Steel products manufacturer Leform Bhd has signed a memorandum of understanding (MOU) with Japan’s Nippon Steel Trading Corporation (NSTC) to strengthen steel supply and support future business growth.
In a filing with Bursa Malaysia, Leform said the collaboration will allow the company to increase its purchase of steel materials from NSTC and prioritise sourcing from NSTC and its Malaysian unit, NST Trading Malaysia Sdn Bhd.
The group said both parties will also explore joint projects, while Leform may consult NSTC on procurement matters for future factory developments.
Leform managing director Law Kok Thye said the partnership will strengthen the company’s strategic position and create new growth opportunities.
He added that leveraging NSTC’s expertise and network would help improve operational efficiency and support long-term value creation.
Under the agreement, Leform will also assist NST Trading Malaysia in engaging local steel suppliers and mills for commercial negotiations and export opportunities.
Meanwhile, Nippon Steel and its Malaysian subsidiary will provide technical expertise to help Leform improve efficiency, profitability and safety across its operations.
Leform said the partnership is expected to create a more stable supply chain, especially in managing raw material price volatility and supply shortages.
The MOU follows NSTC’s RM25 million investment in Leform earlier this year for a 10% stake in the company.
