KUALA LUMPUR (March 3): Pantech Global Bhd (KL:PGLOBAL) said on Monday its US clients continued to place orders from the newly listed steel pipe manufacturer despite new import tariffs.

The company has been in constant contact with its customers in the US, “and none of them have shown any sign of concern”, said managing director Adrian Tan. The US is the single largest market for Pantech Global, contributing 47% to revenue for the year ended Feb 29, 2024 (FY2024).

Demand is still resilient, and “we have built our reputation as an exporter, so people know who we are”, Tan added.

The comments come after the company’s shares fell 32% in its first trade on Monday. Pantech Global, a spin-off of Pantech Group Holdings Bhd (KL:PANTECH), raised RM178 million during its initial public offering.

Both investors and the steel industry are increasingly worried about US import tariffs on steel, which may cause a diversion and flood Southeast Asia with excess products.

Tan said he was disappointed with Pantech Global’s performance on its maiden trading day, stressing that its fundamentals are solid and the company is expected to remain profitable. He also reiterated that the absence of exemptions or exceptions creates a level playing field for the industry.

Apart from the US, the company is also expanding business in the European Union, South America, the Middle East and North Africa, Tan added.

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