KUALA LUMPUR (Oct 16): Worldwide Stainless Sdn Bhd said it plans to restart operations at Bahru Stainless Sdn Bhd, Malaysia's sole producer of cold-rolled stainless steel, which had ceased production in May.
Worldwide Stainless has entered into a deal to acquire Bahru Stainless for US$95 million (RM407.94 million) from Spain-based stainless steel group Acerinox SA, the company said in a statement.
The deal, which is financed 80% by AmBank (M) Bhd, is expected to be closed by the end of November, the company said, adding that Bahru Stainless will continue to operate under its current name upon completion of the acquisition.
“This acquisition is a commitment to the future of Malaysia’s stainless steel industry. We are dedicated to breathing new life into Bahru Stainless, tapping into its untapped potential, and reinstating Malaysia as a key player in the global supply of cold-rolled stainless steel,” said Worldwide Stainless chief executive officer Danny Tan Wei Beoh.
"Our plan to rehire close to 90% of the previous employees reflects our belief in the workforce’s expertise and the future success of this operation,” he added.
Acerinox CEO Bernardo Velázquez noted that the acquisition safeguards the interests of Bahru Sainless's employees and customers, as well as the local community.
"Bahru Stainless has played an important role in our group’s history, and we are confident that under the ownership of Worldwide Stainless, it will continue to thrive and contribute to the industry," he said.
Acerinox had earlier announced that the closure of Bahru Stainless was due to challenging market conditions in Asia, caused by severe overcapacity, which led to very low prices.
Tan, who founded Worldwide Stainless with fellow industry leaders Chung Shan Tat, Datuk Tan Kak Seng, Ta Wee Dher, and Lee Seng Yong, said the acquisition of Bahru Stainless is a "defining moment for Malaysia’s industrial landscape".
"The focus is on restoring Bahru Stainless’ operations and cementing Malaysia’s role as a key player in the global stainless steel industry."