Research by: Dominique Turpin, Anamaya Narain Singh, Cyril Darlong Diengdoh & Sandeep Puri
Abstract
In 2024, the management of Aluminium Cyclo Enterprises (ACE), was concerned that the European Union (EU) export rules for ferrous and non-ferrous scrap were becoming more restrictive. Not just the EU, but close to 43 countries had restricted the export of ferrous scrap. The overall secondary aluminum industry in Malaysia was very dependent on imports and ACE relied heavily on imported scrap. The supply and pricing of raw materials could be volatile due to factors beyond the company’s control, such as global demand and supply, economic and political conditions, tariff disputes, competition, import duties, tariffs and currency exchange rates. These factors exposed the company to major price and currency fluctuation risks. ACE was heavily reliant on the automotive sector for its business. In such circumstances, should ACE consider opening plants in international markets where scrap was readily available? What should the company’s business continuity and growth strategy be in Malaysia?
Learning Objectives
- International Strategy.
- Business-to-Business Marketing.
- Supply Chain Management.
To cite this case: Turpin, D., Singh, A. N., Diengdoh, C., & Puri, S. (2025). Aluminium Cyclo Enterprises Malaysia: How to manage a supply chain disruption. IMD-2665.
To access this case: https://www.imd.org/research-knowledge/case-studies/collection/
