Japanese steelmaker Sumitomo Corporation has announced that it has increased its stake in Malaysia-based service center Sumiputeh Steel Centre Sdn. Bhd. to 100 percent from 50 percent and made the company a wholly-owned subsidiary.
According to Sumitomo Corporation’s statement, following the deregulation in Malaysia which has made 100 percent foreign ownership of companies possible, it has reached an agreement with the Malaysian law firm Zain&Co., its joint venture partner, on making Sumiputeh Steel Centre a wholly-owned subsidiary.
Established in 1980, Sumiputeh Steel Centre provides high-quality coil center services centered on the supply of steel sheets to household appliance and automotive manufacturers who have moved into Malaysia as well as local construction material manufacturers, thereby securing the largest share of the Malaysian market, earning high name recognition, and helping to create jobs and invigorate the local economy. By making Sumiputeh Steel Centre a wholly-owned subsidiary, Sumitomo Corporation is aiming to utilize management resources more effectively and to further bolster its competitiveness and expand its share in the Malaysian steel sheet market, which is expected to see steady growth.
Sumitomo Corporation stated that Malaysia’s sheet market is expected to see stable growth in future, as Japanese manufacturers’ key manufacturing bases in the country continue steady production and as the boom in infrastructure investment plans such as the construction of a high-speed railway connecting Singapore and Kuala Lumpur boosts expectations that demand among non-Japanese and local companies, particularly those in the construction materials sector, will expand.