Union Steel

Union Steel: Entered into a non-binding heads of terms with Chye Hup Heng (CHH) to acquire its metal recycling business in Malaysia for a price of between RM40-48m. Union Steel intends to finance the costs of the proposed acquisition by internal funds and bank borrowings. The acquisition involves parcels of land in Malaysia, together with the buildings machinery, plant and equipment on the land. The land is in relation to CHH's metal recycling business in Malaysia. Union Steel is currently exporting and supplying the recycled metals from Singapore to its customers in Malaysia and the acquisition will enable the group to carry out recycling business in Malaysia, with a view on increasing its market share and visibility in Malaysia. Further, the Company will also be able to tap on the Malaysian market to source for scrap metals to increase the supply of scrap metal to meet the demands of its customers in Malaysia and in the region. CHH is a private company that engages in businesses comprising the processing of ferrous metal scrap and treading of steel mill related products. It involves the segregation, reducing, shearing and compressing of ferrous scrap into manageable sizes to meet its customers’ requirements essentially known as metal recycling in Malaysia.