Worldwide Stainless leads Malaysia’s steel comeback

In a bold move to revive Malaysia’s stainless steel industry, Worldwide Stainless has acquired Bahru Stainless Sdn. Bhd. for USD 95 million from Spain-based Acerinox S.A.

This acquisition positions Malaysia back in the global stainless steel arena, with the transaction set to close by the end of November 2024.

Bahru Stainless, the country’s sole producer of cold-rolled stainless steel, ceased operations in May 2024.

Recognising the strategic value of this asset, Worldwide Stainless seized the opportunity to restart production, aiming to rehire nearly 90% of Bahru’s retrenched workforce, restoring its workforce expertise and revitalising operations.

Worldwide Stainless: Reviving a key industry asset

Worldwide Stainless’s acquisition marks a significant chapter for Malaysia’s industrial future. Under the leadership of CEO Danny Tan Wei Beoh, the company has big plans for Bahru Stainless.

“This acquisition is a commitment to the future of Malaysia’s stainless steel industry,” Tan stated.

“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.”

The decision to rehire 90% of the previous workforce reflects the company’s confidence in the skills that helped Bahru Stainless build a strong reputation in the market.

Tan and his leadership team, which includes seasoned industry veterans such as Chung Shan Tat, Datuk Tan Kak Seng, Ta Wee Dher, and Lee Seng Yong, are set to steer Bahru Stainless into a new era of success.

Strengthening Malaysia’s position globally

Financed by AmBank (M) Berhad, which is providing 80% of the capital for the deal, Worldwide Stainless aims to elevate Malaysia’s profile in both local and international markets.

The company’s vision is clear: rebuild, innovate, and supply top-quality stainless steel on a global scale.

Bahru Stainless has long played a significant role in Acerinox’s history, with Acerinox CEO Bernardo Velázquez affirming the strategic value of the deal.

“This decision safeguards the interests of our employees, customers, and the local community,” Velázquez said.

“Bahru Stainless has been integral to our group’s success, and we are confident that under Worldwide Stainless’s leadership, it will continue to thrive and contribute to the industry.”

With a solid backing and an experienced leadership team, Worldwide Stainless is poised to restore Bahru’s global footprint, ensuring Malaysia remains competitive in the stainless steel sector.

Danny Tan emphasised, “The focus is on restoring Bahru Stainless’s operations and cementing Malaysia’s role as a key player in the global stainless steel industry.”

This acquisition signals a resurgence for Malaysia’s industrial landscape, bringing fresh hope for the workforce, the local economy, and the country’s position in the global market.

Worldwide Stainless has the resources, expertise, and vision to turn Bahru Stainless into a powerhouse once again, and with this, the future of Malaysia’s stainless steel industry looks promising.