LB aluminum extrusion capacity doubled in Malaysia

Malaysian LB Aluminum (LB Aluminum is one of the largest producers of extruded steel in Malaysia) Financial statements for the fiscal year 2005-2006 (as of April 30) released at the end of June show that the expansion project was completed at the end of April this year. After that, the company's extrusion capacity has increased from the previous 27,600 tons to 50,000 tons. The company’s first-quarter earnings rose 37% year-on-year (RMB77.2 million); net profit also increased by 31% (RM4.2 million). The year-on-year increase was attributable to the increase in output and the increase in the sales price of extrusions. However, higher interest costs, fuel prices and electricity bills have caused LB Aluminum's earnings and net profit to decline by 20% and 5% respectively in the fiscal year. LB Aluminum stated that the change in aluminum prices makes the company's operations difficult, but that is exactly what it needs to learn to adapt. In addition, LB Aluminum also stated that it is optimistic about the domestic and export markets. About 10% of the company's production is supplied to overseas markets and exported to Singapore, Australia, Mauritius, and Sri Lanka. The raw materials needed for its production are mainly from Australia and the Middle East.