Worldwide Stainless acquires Bahru Stainless for US$95 million

KUALA LUMPUR: Worldwide Stainless Sdn Bhd (WSSB) has reached an agreement to acquire Bahru Stainless Sdn Bhd (BSSB) from Spain-based stainless steel leader Acerinox S.A. for US$95 million (RM408 million).

With the transaction expected to close by the end of November 2024, this acquisition marks a significant step in strengthening Malaysia’s position within the global stainless steel industry.

BSSB, Malaysia’s sole producer of cold-rolled stainless steel, ceased operations in May 2024.

Seeing the strategic importance of reviving this key asset, WSSB seized the opportunity.

Under the leadership of CEO Danny Tan Wei Beoh, the company plans to restart operations and rehire nearly 90% of BSSB’s retrenched workforce, restoring the expertise that built the plant’s solid reputation.

Following the acquisition, BSSB will continue to operate under its current name.

Emphasising the importance of this acquisition, Tan said “this acquisition is a commitment to the future of Malaysia’s stainless steel industry.

“We are dedicated to breathing new life into BSSB, tapping into its untapped potential, and reinstating Malaysia as a key player in the global supply of cold-rolled stainless steel.

“Our plan to rehire close to 90% of the previous employees reflects our belief in the workforce’s expertise and the operation’s future success,“ he said.

Backed by AmBank (M) Bhd financing 80% of the deal, WSSB is poised to restore BSSB and accelerate its global expansion.

The company’s vision is to rebuild, innovate, and supply high-quality stainless steel to local and international markets.

Acerinox CEO Bernardo Velázquez said this strategic decision safeguards the interests of its employees, customers, and the local community.

“BSSB has played an important role in our group’s history, and we are confident that under the ownership of WSSB, it will continue to thrive and contribute to the industry,“ he said.

Tan further said that this acquisition is a defining moment for Malaysia’s industrial landscape.

He said the focus is restoring BSSB’s operations and cementing Malaysia’s role as a key player in the global stainless steel industry.

“With the support of our shareholders and partners, we are committed to achieving this vision and creating lasting value for domestic and global markets,“ he said.