KUALA LUMPUR: Leon Fuat Bhd is cautious on the outlook for its steel products as demand could be impacted by the Covid-19 pandemic as infections remain high.
Its executive director Calvin Ooi said the company could not rule out a possible slowdown in activities of activities of its customers due to the high infection rates.
“We continue to take proactive measures such as negotiating forward contracts, prudent inventory management and cost-management to mitigate any negative impact while monitoring steel prices and related foreign currencies, ” he said in a statement issued on Friday.
Ooi said the group would be able to sustain the business based on the satisfactory performance of the first quarter ended March 31.
The statement was issued after Leon Fuat held its 14th AGM and EGM on the virtual platform.
Shareholders passed a resolution for Supreme Steelmakers Sdn Bhd, a wholly-owned subsidiary of the group, to acquire a factory, warehouse and office on a parcel of freehold land in Kajang, Selangor for RM28mil.
It will purchase the assets from Leon Fuat Holdings Sdn Bhd, a privately-held company in which several directors and major shareholders have interests in.