Malaysia’s Worldwide Stainless to acquire Bahru Stainless from Acerinox for US$95 million

[KUALA LUMPUR] SPANISH stainless steel producer Acerinox has signed an agreement to sell its subsidiary Bahru Stainless to Malaysia-based Worldwide Stainless for US$95 million.

Bahru Stainless, which is located in Pasir Gudang in Johor, is Malaysia’s sole producer of cold-rolled stainless steel.

According to Acerinox’s website, it is one of the most technologically advanced stainless steel production plants in South-east Asia, producing 77,181 tonnes of cold-rolled stainless products in 2023.

This sale follows Acerinox’s earlier announcement in May regarding the discontinuation of operations at its Bahru Stainless unit due to challenging market conditions.

The transaction, which was confirmed on Oct 11, is expected to be concluded by late November, said Acerinox in a statement.

Bernardo Velazquez, the chief executive officer of Acerinox, described the transaction as an “important strategic decision” and it is the best option that “defends the interest of the employees, customers and the community”. He added: “We are confident that under the ownership of Worldwide Stainless, it will continue to thrive and contribute to the industry.”

Following the acquisition, Worldwide Stainless chief executive Danny Tan said in a statement on Tuesday (Oct 15) that Bahru Stainless will resume its operation under its existing name. Around 90 per cent of the previous retrenched workforce will be rehired to facilitate the resumption of activities.

“We are dedicated to breathing new life into Bahru Stainless, tapping into its untapped potential, and reinstating Malaysia as a key player in the global supply of cold-rolled stainless steel,” he added.