KUALA LUMPUR (Nov 1): Ta Win Holdings Bhd has secured a contract from South Korea’s POSCO International Corp to supply copper rods and wires as well as other copper-related products.

In a bourse filing, Ta Win said its wholly-owned subsidiary Ta Win Industries (M) Sdn Bhd (TWI) signed the three-year contract (2022-2024) with POSCO International on Monday.

Under the deal, TWI will supply about 65,000 tonnes of the products during the three years, starting with 10,000 tonnes in the first year.

Ta Win said TWI expects to achieve an aggregated revenue of RM2.55 billion during the contract period based on the London Metal Exchange copper price of US$9,440 per tonne.

"The three-year sales contract shall be automatically extended for successive periods of one year without written notice, unless either party expressly requests termination," it added. 

POSCO International is a 62.9%-owned subsidiary of POSCO, a public-listed company on the Korea Exchange. It is principally engaged in trading of steel, chemical products, nonferrous metals and automotive parts and components, resources development, and infrastructure development.

POSCO International plans to proactively pursue business opportunities in traction motor cores and other electric vehicle (EV) parts, rechargeable battery materials and the hydrogen economy.

Meanwhile, TWI’s principal activity is the supply of copper rods and wires, which are the raw materials of copper foil that is widely used as a substrate of anode materials coating in EV batteries.

Ta Win’s share price closed unchanged at 15.5 sen, for a market capitalisation of RM529 million. The stock was among the top five most actively traded on Bursa Malaysia with 68.19 million shares traded.