Malaysia-based steelmakers Ann Joo Resources (AJR) and Southern Steel Berhad (SSB) have mutually agreed to terminate their memorandum of understanding (MoU) with immediate effect due to uncertain market conditions caused by the coronavirus, according to a filing by AJR on May 27 at Bursa Malaysia, the Malaysian stock exchange.
This decision is not expected to materially affect AJR’s consolidated earnings for the financial year ending June 30, 2020.
On October 7, 2019, AJR and SSB had signed a memorandum of understanding to form a joint venture company to venture into the long steel product business, as previously reported by SteelOrbis.
It was expected that AJR would own a 55 percent stake in the proposed JV, while SSB would hold the remaining 45 percent interest.