PYX Resources Ltd (LSE:PYX, NSX:PYX) told investors it has begun using a key logistics and inventory storage opportunity based on Kuala Lumpur's Port Klang port infrastructure.
Compared with the company’s own logistics infrastructure, PYX said Port Klang offers “increased connectivity, more competitive port facility, higher efficiency, lower cost factors, excellent information systems and a green port management.”
The zircon producer said that it will allow it to reduce shipping times to international customers, improve predictability, reduce shipping costs into key markets in India, Europe and the Americas, and will potential help provide a buffer of stock to smooth out impact of seasonal storms or other supply chain issues.
It operates through a free commercial zone which permits the company to carry out trade and manufacturing activities, PYX noted.
"Port Klang is a bonded, free-trade, logistics hub perfectly suited to provide a low cost, rapid response logistics centre plugged into global markets,” PYX chief executive Oliver Hasler said in a statement.
"Having this additional, world-class facility allows PYX to tap into Metal and Mineral Trading company Wogen's supply chain, which assists PYX's cash flow and allows for a more mature and sophisticated sales approach.
"Our customers will gain significant benefit from the substantial improvements this new facility will bring to our logistics and handling as we grow the supply of our premium zircon product to global markets," he added.