Tuesday, July 27, 2010

Perstima concerned about raw material prices fluctuation

KUALA LUPUR: Tin plate manufacturer, Perusahaan Sadur Timah Bhd (Perstima), sees the fluctuation in raw material prices due to the new pricing mechanism for iron ore since the beginning of this year and cheaper imports from China as the biggest challanges for the group going forward. ''

However, its managing director, Shigeki Tashiro said on Tuesday, July 27 after Perstima's shareholders meeting on July 27 that the company hopes to reduce the price fluctuation risk once its main black steel supplier, JFE Steel Corp Ltd of Japan starts production from a new facility in Japan at the end of the year. ''

Black steel is the main material used in the manufacturing of steel plate, which is mainly used in canning of food and edible products.

Perstima is also looking to maintain the record dividend payout of 40.5 sen in financial year ended March 31, 2010, as the company has not planned any major capital expenditure in the coming year and will continues to return excess cash to its shareholders. ''

Tashiro said that the Perstima has sufficient internal funds to finance around RM30 million in capital expenditure for the next two years, or RM15 million a year.


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