The world's second largest steelmaker Nippon Steel Corporation has been in discussions with Malaysian steel sheet manufacturing company Yung Kong Galvanising Industries Berhad (YKGI) regarding a possible investment in and provision of stable supplies of hot rolled steel products to YKGI.
A Nippon Steel press release said that the company has reached an agreement with YKGI to subscribe for redeemable convertible preference shares which will be newly issued by YKGI (if converted, equivalent to 10 percent of the ordinary shares of YKGI) in June 2010.
"By investing in YKGI, Nippon Steel aims to strengthen their relationships and securely capture flat steel demand which is expected to grow steadily in Malaysia, by expanding its business with YKGI through stable supply of hot rolled steel substrates to YKGI," Nippon Steel said.