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Nippon Steel Invests in Malaysian Steel Sheet Manufacturing Firm
03/09/2010 - Nippon Steel Corp. has reached an agreement with Yung Kong Galvanizing Industries Berhad (YKGI) to subscribe for redeemable convertible preference shares, which will be newly issued by YKGI around June 2010.
Nippon Steel Corp. has been in discussion with Yung Kong Galvanizing Industries Berhad (YKGI) on possible investment in and stable supplies of hot-rolled steel substrates to YKGI.
Nippon Steel has now reached an agreement with YKGI to subscribe for redeemable convertible preference shares, which will be newly issued by YKGI (if converted, equivalent to 10% of the total number of ordinary shares of YKGI) around June 2010.
Nippon notes that demand for flat steel products in Malaysia is expected to grow steadily not only in the manufacturing industry but also in construction.
By investing in YKGI, Nippon Steel aims to strengthen the companies’ relationship and to capture flat steel demand.
YKGI has established manufacturing plants east and west of Malaysia in Kuching, Sarawak, an East Malaysian State in the island of Borneo, and Klang in Malay Peninsula. It also owns trading and construction material processing subsidiaries.
