Kuala Lumpur, Malaysia, 27 June 2012 – Malaysia Steel Works (Masteel) today signed a RM500 million three-year offtake agreement with Trafigura Pte Ltd. (Trafigura) the world’s second largest independent trader of bulk and non-ferrous minerals.
The agreement will see Trafigura purchase products of steel billets and steel bars from Masteel over a period of three years. The supply of steel products is anticipated to commence in the second half of 2012.
The signing ceremony held today was signed by Dato’ Sri Tai Hean Leng, Managing Director and Chief Executive Officer of Masteel and Dominic Watters, Managing Director of Trafigura Pte Ltd, and witnessed by Dato’ Jacob Dungau Sagan, Deputy Minister of International Trade and Industry.
In his speech, Masteel Managing Director and Chief Executive Officer Dato’ Sri Tai Hean Leng said, “We are honoured with this vote of confidence from Trafigura and believe that this decision was based on the high quality products that we produce and our track record of being a reliable supplier.
“This deal is indeed timely for the Group as we are continually expanding our upstream and downstream steel production capacity. This expansion would allow us to comfortably meet the demands of Trafigura’s clients in the Asia-Pacific region,” he added.
Masteel currently has a meltshop at Bukit Raja with a 550,000 metric tonne (MT) capacity and a rolling mill at Petaling Jaya with a capacity of 350,000 MT.
Dominic Watters, Managing Director of Trafigura Pte Ltd said: “Trafigura has a strong foundation in the trading of bulk and non-ferrous minerals. In recent years, we have witnessed a major shift in our customer base, one which is moving eastwards from the European and American markets. Trafigura is responding to that shift by increasing our activities in the Asia Pacific region.”
“Trafigura has identified Malaysia as a key country for our growth in Asia, and the signing of this agreement with Masteel accurately reflects that commitment. We are fully appreciative of Masteel’s faith in our company and look forward to a long-term relationship,” he added.
Trafigura is the world’s second largest independent trader of bulk and non-ferrous minerals and has investments in industrial assets around the world. The company established its regional hub in Singapore last year and is expanding into the ferrous market. To date, Trafigura has invested significantly in Malaysia, including in oil terminals and metal warehouses in Pasir Gudang, Johor and a metals warehouse in Port Klang, Selangor.
Malaysia Steel Works (KL) Bhd is listed on the Main Market of Bursa Malaysia Securities Bhd. It is involved in the manufacturing of high-tensile deformed steel bars, mild steel round bars and steel billets. It exports 30% to 40% of its products and has 68 domestic dealers and several international trading houses as partners in Australia, New Zealand, Indonesia, Singapore, Thailand, Vietnam and The Philippines.
Masteel has vast experience in the operations & maintenance of the latest process technologies and automation systems with over 40 years of track record of managing European-made steel mills and industrial plants.
Masteel is one of the top five integrated steel companies in Malaysia. For further information: www.masteel.com.my
Contact: Trafigura press office
Tel: +44 207 009 1708