Nippon Steel Corporation, the world’s second largest steel manufacturer, has been in discussions with Malaysian steel sheet group Yung Kong Galvanising Industries Berhad (YKGI) about a possible investment and provision of stable supplies of hot rolled steel products to YKGI.
Nippon said that the company had reached an agreement with YKGI to subscribe for redeemable convertible preference shares, which will be newly issued by YKGI in June 2010.
"By investing in YKGI, Nippon Steel aims to strengthen relationships and securely capture flat steel demand, which is expected to grow steadily in Malaysia, by expanding its business with YKGI through stable supply of hot rolled steel substrates to YKGI,” Nippon Steel said.