Sets Sights on Revitalising Malaysia’s Stainless Steel Industry
Kuala Lumpur, 12 October 2024 – Worldwide Stainless Sdn. Bhd. has reached an agreement to acquire Bahru Stainless Sdn. Bhd. from Spain-based stainless steel leader Acerinox S.A. for a total consideration of USD 95 million. This acquisition marks a significant step in strengthening Malaysia’s position within the global stainless steel industry, with the transaction expected to close by the end of November 2024.
Bahru Stainless Sdn. Bhd., Malaysia’s sole producer of cold-rolled stainless steel, ceased operations in May 2024. Seeing the strategic importance of reviving this key asset, Worldwide Stainless seized the opportunity. Under the leadership of CEO Danny Tan Wei Beoh, the Company plans to restart operations and rehire nearly 90% of Bahru Stainless’s retrenched workforce, restoring the expertise that built the plant’s solid reputation. Following the acquisition, Bahru Stainless Sdn. Bhd. will continue to operate under its current name.
Danny Tan emphasised the importance of this acquisition: “This acquisition is a commitment to the future of Malaysia’s stainless steel industry. 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. Our plan to rehire close to 90% of the previous employees reflects our belief in the workforce’s expertise and the future success of this operation.”
Shaping the Future of Stainless Steel in Malaysia
Worldwide Stainless was formed with a strategic vision by a team of seasoned industry leaders, including Danny Tan, Chung Shan Tat, Datuk Tan Kak Seng, Ta Wee Dher, and Lee Seng Yong. Together, this dynamic team brings decades of experience and expertise, creating a formidable force ready to propel Bahru Stainless into a new era of success. Backed by AmBank (M) Berhad, which is financing 80% 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.
Bernardo Velázquez, CEO of Acerinox S.A., remarked: “This strategic decision safeguards the interests of our 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.”
Danny Tan further added: “This acquisition is a defining moment for Malaysia’s industrial landscape. The focus is on restoring Bahru Stainless’s operations and cementing Malaysia’s role as a key player in the global stainless steel industry. With the support of our shareholders and partners, we are committed to achieving this vision and creating lasting value for domestic and global markets.”
About Worldwide Stainless
Worldwide Stainless Sdn. Bhd. is a Malaysian company formed with a clear vision to revitalise the nation’s stainless steel industry. Driven by an experienced team of shareholders, the company is focused on strengthening Malaysia’s presence in the global stainless steel market and leading the industry into a new era of growth.