KUALA LUMPUR: AMS Advanced Material Bhd's wholly owned subsidiary, AMS Ecogreen Sdn Bhd, has obtained the necessary licences to commence its aluminium scrap metal business.

In a statement, the aluminium specialist said the new business will undertake the collection, processing and sale of aluminium scrap materials, with operations to be carried out at a facility in Johor.

The facility is expected to have an initial processing capacity of about 17 tonnes of aluminium scrap a month.

Managing director Keh Teng Yang said obtaining the licences marks another milestone in delivering the strategic initiatives outlined in the company's initial public offering prospectus.

He said the aluminium scrap business complements AMS' existing aluminium supply and processing operations while leveraging its established customer base and industry network.

"As more customers place greater emphasis on resource efficiency and sustainable manufacturing, we believe AMS is well-positioned to capture opportunities in the growing aluminium recycling market while creating an additional recurring revenue stream for the company," he said.

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