Wednesday, 9 May 2012

Southern Steel in JV with Belgian firm to make steel wires in Asean region

KUALA LUMPUR (May 9): SOUTHERN STEEL BHD [] has entered into a joint venture (JV) agreement with Belgium-based NV Bekaert SA (NV BK) to form a JV company in Singapore to manufacture specified steel wires in the ASEAN region.

Southern Steel said in a filing on on Wednesday that it would hold 45% in the JV and NV BK the remaining 55%.

“NV BK is a public company listed on Euronext Brussels (BEKB).

“It is a global player in drawn steel wire products and technologically strong in advanced solutions based on metal transformation and coatings. Presently, NV BK serves customers in more than 120 countries,” it said.

Southern Steel said it would sell its entire equity interests in three of its subsidiaries to the JV company while NV BK would sell its entire stake in its Indonesian subsidiary to the JV for an aggregate consideration of the equivalent of US$44.6 million.

Southern Steel said it would sell its entire equity interests in its wholly-owned subsidiaries, Southern Speciality Wire Sdn Bhd (“SSW”) and Southern Wire Industries (Malaysia) Sdn Bhd (“SWI”) together with its wholly-owned subsidiary, Cempaka Raya Sdn Bhd to the JV Co.

It said NV BK will sell its entire galvanized and multi-coated wire business in Indonesia currently undertaken by its Indonesian subsidiary, PT Bekaert Indonesia to the JV Co

Southern Steel said the JV would provide it the opportunity to expand its steel wire manufacturing and sale business and to jointly promote the Southern Steel and NV BK brand in the Aseaon market.

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