Alcom expects to return to the black as export demand rises

PETALING JAYA: Aluminium Co of Malaysia Bhd (Alcom) hopes to return to the black in the financial year ended March 31 (FY10) as export demand for aluminium products shows sign of improvement. Managing director S.P. Tan said the company was also pursuing new export markets such as India, Sri Lanka, Hong Kong, the Philippines and the Middle East apart from improving its operational efficiency and product mix. “We export about 50% to 60% of our products and this quarter, demands seem to be improving. We hope this will continue for us to do better, pushing our business to make some profits for FY10,” he said yesterday at the company AGM. For FY09, it posted a net loss of RM638,000 on the back of RM302.89mil in revenue. On Alcom’s plan for expansion, Tan said it currently had enough capacity to cope with immediate demand. “We will continue to leverage our strengths in continuous improvement and overall quality management to rein in costs and improve productivity,” he said. He added that the company was taking a prudent position of conserving cash as it didn’t want to overstretch. “Perhaps the order of the day is to maintain a stable situation while waiting for stronger long-term recovery signals before using the money to finance any major structural expansion,” he said. Tan said Alcom would strive to differentiate its products by introducing new coatings and alloys to the market. In terms of service, he said the company would leverage on its reputation of reliability and punctual delivery to give the best quality products and services.