Delivering Sustainable Value For Our Stakeholders Delivering Sustainable Value For Our Stakeholders Press Metal Aluminium Holdings Berhad 110 111 Integrated Annual Report 2023 Upholding Good Governance and Economic Resilience Number of Suppliers (%) 2021 94.7 Local Procurement Foreign Procurement Local and Foreign Procurement 5.3 2022 94.8 5.2 94.6 2023 5.4 Total Expenditure (%) 2021 Local Procurement Foreign Procurement 53.4 2022 50.3 42.3 2023 49.7 57.7 Notes: 1. Total Expenditure refers to the amount spent on local suppliers covering all our manufacturing facilities which are located in the respective operating country (i.e., Malaysia and China). 2. Both diagrams contained aggregated data from our midstream facilities (PMBtu, PMS, PMAR) and downstream (PMBA, PMI, PMIT) facilities. 3. Data differed from SR 2022 as an enhanced calculation methodology has been adopted in FYE2023. In FYE2023, no major non-compliance issues concerning our suppliers were reported. Nonetheless, we proactively encourage them to develop risk mitigation or corrective action plans to address any risks identified during our engagement sessions. 46.6 GOING FORWARD Press Metal is dedicated to enhancing the resilience, agility, and overall efficiency of our supply chain, recognising our responsibility to foster social and economic development in the communities where we operate. Our approach relies on concerted efforts with our suppliers that align with our objectives and values. We strive to enhance our Supplier Management Programme by leveraging digital tools to streamline and enhance our suppliers’ oversight, facilitating greater transparency and accountability throughout our supply chain, positioning ourselves towards a viable supply chain while advancing for sustainability. Looking ahead, we will remain steadfast in our commitment to continually assess our suppliers to uphold responsible sourcing practices. Upholding Good Governance and Economic Resilience OUR APPROACH Adopting Quality Product and Manufacturing Standards Press Metal’s principal business activities include the manufacturing and trading of primary, value-added and extrusion aluminium products. Our primary aluminium P1020 ingots are certified by the LME as High Grade Primary Aluminium and adhere to the strict specifications and standards set by the LME. Likewise, our aluminium electrical conductor grade rods, made with a minimum aluminium purity of 99.5%, are tailored to meet demands from the electrical industry, offering a unique combination of lightweight and high conductivity that meets exacting customer requirements and needs. Our manufacturing facilities adhere to rigorous quality standards, with all manufacturing facilities (100%) being ISO 9001:2015 certified. In addition, our extrusion entities expanding quality management to various industry and marine standards including IATF 16949:2016 for Automotive Quality Management, SIRIM Product Certification License, QUALICOAT 2023 Specification, BS EN 15088:2005 Aluminium and Aluminium Alloy-Structural Products for Construction Works, CNASCL01 Accreditation Criteria for the Competence of Testing and Calibration Laboratories, and more. Each plant has in place a Quality Policy, supporting our commitment to consistently deliver products that meet customer expectations and align with pertinent industry standards. Managing Quality Testing, Root Cause Analysis and Improvements We conduct chemical and physical tests on our aluminium products, providing customers and distributors with the results through our safety data sheets, which will be reviewed by respective EHS departments every five (5) years. 100% of our casted products are assessed for health and safety impacts. We also perform third-party laboratory testing, depending on the type of aluminium product, in compliance with Registration, Evaluation, Authorization and Restriction of Chemicals (“REACH”) and Restriction of Hazardous Substances (“RoHS”) guidelines. Furthermore, in response to client requests, we undertake supplementary testing to meet their specific needs and expectations. We maintain meticulous documentation of our manufacturing processes and product specifications as well as recording inspections and testing procedures. We also ensure timely reporting and resolution of any non-compliance issues and we value open communication with both customers and internal teams. Moreover, we actively seek customer feedback to identify areas for improvement to prevent future non-compliance issues. In the event of a complaint, we employ a thorough root cause analysis utilising the 7 Quality Control Approach. This systematic analysis entails tracing issues back to the manufacturing process and necessitate the implementation of corrective actions through necessary adjustments. Any identified issues are communicated via the 8-Discipline (“8D”) Report Form or Corrective Action Request Form to facilitate a thorough investigation and identification of the root cause. PRODUCT QUALITY AND CUSTOMER SATISFACTION GRI 3-3, GRI 416-2, GRI 417-1 M5 WHY IT MATTERS Ensuring consistent and timely delivery of high-quality aluminium products that meet customer requirements and expectations are crucial for maintaining our success. By prioritising these aspects, we not only enhance trust with our stakeholders but also strategically position Press Metal for sustained growth in a competitive market. Moreover, the invaluable feedback from our customers serves as an acknowledgement of the quality of our products and provides insights for continuous improvement, which, in turn, strengthens our market position in the industry. UN SDGs Capitals FC MC SRC
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