Posted on 15 May 2020

 

Source: New Straits Times Online

Nippon EGalv Steel Sdn Bhd, a subsidiary of Nippon Steel and Sumitomo Metal Corporation is expected to shutter its operations in Penang on July 31.

The electro-galvanised (EG) steel manufacturer informed its business partners of the decision in a letter yesterday, without elaborating.

Nippon EGalv, is located in Seberang Prai and has an estimated 160 employees.

Nippon Steel Corp is a major global steel maker was reported in March this year to have announced plans to liquidate its financially-troubled subsidiary in Malaysia that produces steel sheets for electric appliances.

It was said that the company is expected to disband its operations in Malaysia by the end of this year, once it ceases manufacturing EG steel sheets in June.

It was also reported that once it ceased its local production of EG in Malaysia, Nippon Steel will supply the material made at its ironworks in Chiba and Hyogo prefectures in Japan directly to its Malaysian customers, comprising mainly television and audio equipment makers.

In his letter to the company's business partners dated May 13, Nippon EGalv president, Norihisa Hanada said:

"If we have any active agreement and contract with your company, this letter serves as a termination notice for the respective contracts and agreements.

"Payments for all outstanding invoices will be arranged."

The current Nippon Steel was established in 2012 as Nippon Steel and Sumitomo Metal Corpation, through a merger between Nippon Steel and Sumitomo Metal Industries, Ltd. and was renamed Nippon Steel in 2019.

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