Ambank Finances RM1.06 Bln Acquisition Of Bahru Stainless From Spain’s Acerinox

KUALA LUMPUR, March 5 (Bernama) -- AmBank (M) Bhd has granted financing facilities to Worldwide Stainless Sdn Bhd, an affiliate of Yankong Group, for the acquisition of Bahru Stainless Sdn Bhd from Spain's Acerinox S.A. for RM1.06 billion.

The acquisition was completed in November 2024, with AmBank financing 80 per cent of the deal between Worldwide Stainless and Acerinox.

AmBank group managing director of business banking Christopher Yap commented that the acquisition marks a bold step forward that will benefit the Malaysian economy and the nation's stainless steel industry.

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"Malaysia's stainless steel industry is poised for growth, and with Worldwide Stainless’s expertise combined with our financial support, we are well positioned to seize new opportunities in both local and global markets," he said at the press conference following the signing ceremony of the financing facilities.

He explained that the US$95 million (approximately RM450 million) financing structure for the acquisition covers 80 per cent of the deal, while the remaining about RM600 million is allocated for working capital.

"The company requires significant capital to import raw materials, particularly coils, which are essential for stainless steel production," he said.

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Meanwhile, Worldwide Stainless and Yankong Group chief executive officer Danny Tan Wei Beoh said the United States' (US) 25 per cent tariffs on steel imports have created new opportunities for the company.

"Despite concerns about the US tariff on stainless steel, we view it as an advantage rather than a hindrance. Under Donald Trump's tariff policy, China-based suppliers have historically exported stainless steel to Canada, Mexico, and South Korea, which then re-exported it to the US.

"However, with the new tariff restrictions, these countries can no longer supply the US market competitively. This shift opens new opportunities for our company to increase exports to the US, as American buyers seek alternative suppliers," he added.

-- BERNAMA