Nippon Steel Trading’s Malaysian subsidiary NST Trading Malaysia Sdn Bhd is investing RM25 million to take a 10% stake in Leform Bhd. Under the agreement, NST Trading Malaysia will subscribe for 148.1 million new shares at RM0.1688 each, a price determined by a discount to the five-day volume-weighted average market price.

Leform plans to use the capital to buy raw materials and build inventory before possible price hikes, aiming to secure steel supplies and improve profit margins.

Leform Managing Director Law Kok Thye said that the partnership strengthens the company’s capital and creates supply chain synergies. Besides, Leform expects its new Serendah warehouse to improve logistics as the company expands its reach in the steel pipe and flat steel markets.