The Sun Daily reported that flat steel products maker BlueScope Steel (Malaysia) Sdn Bhd has assured that its operations and management here will remain unchanged, following parent BlueScope Steel Limited's announcement that it had formed a JV with Nippon Steel Corporation of Japan encompassing BlueScope's ASEAN and North American building products business.
Mr Somkiat Pintatham BlueScope president for Malaysia, Singapore and Brunei, said that "BlueScope Steel Malaysia's operations and management will remain unchanged post-transition and all existing arrangements and working relationships with suppliers and customers will not be affected."
BlueScope Steel Malaysia is a JV between the Australian group and PNB Equity Resource Corporation Sdn Bhd.
The latest JV between BlueScope and NSC encompasses 3,000 employees and 29 manufacturing plants across ASEAN and North America. In Malaysia, BlueScope owns and operates six manufacturing plants for roll forming and coated steel building products that are located in Kapar, Klang; Shah Alam, Sabah and Sarawak.
Mr Pintatham said that with a combined enterprise valuation of USD 1.36 billion across its businesses in Indonesia, Malaysia, Singapore, Brunei, Thailand and Vietnam, the JV affords BlueScope the financial flexibility to grow its footprint across the region.
He added that "This represents a significant breakthrough for BlueScope and opens up a slew of investment opportunities as far as Malaysia is concerned. NSC is one of the world's most innovative steel companies. We have had a long standing 40 year association with them, collaborating closely on technological development capabilities. By tapping into their substantial research and development base through technology transfer, the local industry stands to learn from global expertise know how which will raise the standards of capabilities within the market."
Apart from technology sharing, NSC facilitates access to a broader range of customers in new channels and product areas currently not accessible to BlueScope, namely home appliances.
Mr Pintatham said that "NSC has an established Japanese customer base in ASEAN, which presents the opportunity to supply manufacturing for air conditioners, refrigerators and washing machines which was previously not available to us. The trickle down effect from these new horizons augurs well not only for BlueScope, but for our suppliers and customers within the ecosystem as well."
He added that the building and construction sector remains on the uptrend, fuelled by domestic demand and government-initiated projects despite the uncertain global economic climate.
Source - The Sun Daily
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