KUALA LUMPUR: Worldwide Stainless Sdn Bhd has reached an agreement with Spain-based stainless steel leader Acerinox SA to acquire Bahru Stainless Sdn Bhd for a total consideration of US$95 million or RM407.55 million.
The company said this acquisition marks a significant step in strengthening Malaysia’s position within the global stainless steel industry.
"The transaction is expected to close by the end of November 2024,” it said.
Bahru Stainless is Malaysia’s sole producer of cold-rolled stainless steel and has ceased operations in May 2024.
Worldwide Stainless chief executive officer (CEO) Danny Tan Wei Beoh said the company plans to restart operations and rehire nearly 90 per cent of Bahru Stainless’s retrenched workforce, restoring the expertise that built the plant’s solid reputation.
"Following the acquisition, Bahru Stainless will continue to operate under its current name, and this acquisition is a commitment to the future of Malaysia’s stainless steel industry,” he said in a statement.
Backed by AmBank (M) Bhd, which is financing 80 per cent of the deal, Worldwide Stainless is poised to restore Bahru Stainless and accelerate its global expansion.
The company’s clear vision is to rebuild, innovate, and supply high-quality stainless steel to both local and international markets.
Meanwhile, Acerinox CEO Bernardo Velazquez said that this strategic decision would safeguard the interests of its employees, customers, and 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.
"We thank all those who have been part of this journey,” he added. - Bernama
