PT Alumindo Light Metal Industry Tbk (ALMI) has stopped operations including all operational activities of the company such as production, administration, and sales as a result of the impact of the prolonged financial trouble since the 2018 global economic crisis.
Founded in 1978, ALMI is the largest aluminum rolling manufacturer in Southeast Asia located in Surabaya, Indonesia. This company is a subsidiary of the Maspion Group.
Wibowo Suryadinata, Corporate Secretary at ALMI said this step was taken because the company had had no income nor expenses, except for bank interest costs and contribution obligations.
“Until now, the Company’s management is still trying to find investors or pressure to find new market targets or improve operational facilities,” he said, on Tuesday, October 29, 2024.
ALMI had experienced this financial difficulties since 2018, a crisis that hit the company as a result of the global economic crisis.
ALMI was directly impacted by the imposition of import duties by the United States (US), because it is one of the company’s main export destinations.
Previously, ALMI overcame this difficult situation by trying to find new markets and establishing cooperation with investors and partners in the aluminum sheet business sector.
However, until now these efforts have not produced significant results to overcome the difficult situation, which has resulted in the company’s income continuing to decline.
Currently, sales quantities have fallen from around 10,000 tons per month to less than 2,000 tons per month.
Wibowo said that due to the difficult situation experienced by the company so far there have been no legal problems arising from the cessation of operational activities.
Rescue journey
In an effort to resolve the problem, the company has taken rescue strategy following a recommendation of the General Meeting of Shareholders on December 7, 2021.
The shareholders agreed to the Capital Increase Without Pre-emptive Rights (PMHTD) of Rp800 billion (US$50.8 million) to help ease the burden of the company’s debt costs.
Furthermore, management continues to seek the best measures for the continuity of the company, until finally the management decided to stop operating activities for an undetermined period of time.
