JAKARTA. PT HK Metals Utama Tbk (HKMU) has put the operation of two of its subsidiaries, PT Handal Aluminium Sukses (HAS) and PT Rasa Langgeng Wira (RLW), to a temporary halt.

Muhamad Kuncoro, President Director of HKMU, mentioned that HAS is a subsidiary in the extruded aluminium manufacturing industry, whereas RLW operates in the PVC pipe manufacturing field.

“With this temporary shut down of subsidiaries, HKMU will not focus on the aluminium and PVC pipe businesses for a while,” Kuncoro added in the official statement.

The reason behind this temporary operational termination of HAS and RLW is their consecutive losses, especially through the COVID-19 pandemic from 2020 to 2022. On top of these losses, both subsidiaries had tight budget for their working capital.

“Therefore, the subsidiaries are having difficulties in operating their businesses and fulfilling their obligations to creditors, which have sent out warnings,” Kuncoro admitted.

However, Kuncoro said that HKMU will continue to seek new investors that could offer financial aid to the company and its subsidiaries to meet their working capital needs. (KR/ZH)