Ann Joo and Southern Steel to combine and list JV firm

An equity analyst told StarBiz that the move could boost the utilisation rates of production plants owned by Ann Joo and Southern Steel as well as reduce the manufacturing costs by achieving greater economies of scale. (File pic shows the Southern Steel factory in Prai.)

PETALING JAYA: Two leading steel players are combining their steel bars and billets businesses in a RM1.65bil partnership deal, with the ultimate aim to list the soon-to-be-established joint-venture (JV) company on Bursa Malaysia.

The proposal by the country’s largest steel company by market capitalisation, Ann Joo Resources Bhd, and Southern Steel Bhd is mooted at a time when the local steel industry is hit by weak demand and depressed selling prices.