Thursday 28 Mar 2024
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This article first appeared in The Edge Financial Daily on April 3, 2020

KUALA LUMPUR: PN17 company Kinsteel Bhd said its wholly-owned subsidiary Kin Kee Steel Service Centre Sdn Bhd (KKSSC) has inked a letter of intent to start negotiations with Tianjin Qiangbang Industrial Co Ltd to form a joint venture company (JVC) to run a steel mill in Gurun, Kedah.

In a bourse filing, Kinsteel said that under the proposal, KKSSC is expected to hold 45% shareholding in the JVC. KKSSC, currently dormant, was previously involved in the manufacturing and trading of wire mesh. It has ceased operations since December 2017.

Tianjin Qianbang is principally engaged in the business or trades of steel smelting, rolling and making, with a share capital of 50 million Chinese yuan (RM30.65 million).

Kinsteel said the JVC shall be set up as a private company limited by shares in Malaysia with an expected paid-up capital of RM10 million, while KKSSC shall be tasked to secure all licences and approvals from relevant authorities relating to the production of steel products.

The company said the proposed transactions do not form part of the proposed regularisation announced on July 24, 2019, but will be implemented subject to completion of the proposed regularisation plan. The proposed transactions are not subject to Kinsteel shareholders’ approval.

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