Worldwide Stainless Sdn. Bhd. has agreed to acquire Bahru Stainless Sdn. Bhd. from Spain-based stainless steel leader Acerinox S.A. for a total consideration of RM408 million (USD 95 million x 4.3) with the transaction expected to close by the end of November 2024.
Bahru Stainless Sdn. Bhd., Malaysia’s sole producer of cold-rolled stainless steel, ceased operations in May 2024 with Worldwide Stainless lookign to revive the company. CEO Danny Tan Wei Beoh, said the company plans to restart operations and rehire nearly 90% of Bahru Stainless’s retrenched workforce, restoring the expertise that built the plant’s solid reputation. Following the acquisition, Bahru Stainless Sdn. Bhd. will continue to operate under its current name.
Danny Tan emphasised the importance of this acquisition: “This acquisition is a commitment to the future of Malaysia’s stainless steel industry. We are dedicated to breathing new life into Bahru Stainless, 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 future success of this operation.”
Backed by AmBank (M) Berhad, which is financing 80% of the deal, Worldwide Stainless is poised to restore Bahru Stainless and accelerate its global expansion. The company is keen to rebuild, innovate, and supply high-quality stainless steel to both local and international markets.
Bernardo Velázquez, CEO of Acerinox S.A., remarked: “This strategic decision safeguards the interests of our employees, customers, and the local community. Bahru Stainless has played an important role in our Group’s history, and we are confident that under the ownership of Worldwide Stainless, it will continue to thrive and contribute to the industry. We thank all those who have been part of this journey.”
