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Nippon Steel Trading Corp (NTSC)—the trading arm of Japan’s largest steelmaker, Nippon Steel—and its Malaysian subsidiary, NS Trading Malaysia Sdn. Bhd., have signed a memorandum of understanding with Leform Berhad, a Malaysian steel processing company. HX300YD+ZM steel strip ,Headquartered in Selangor on the west coast of Peninsular Malaysia, Leform operates as a steel service center and manufactures steel pipes and guardrails.
According to a statement by NTSC, the company plans to expand its "local production for local consumption" business footprint in Malaysia through close collaboration with Leform. By focusing on infrastructure-related demand and further expanding the market for construction steel, NTSC aims to strengthen its presence not only in Malaysia but also across the broader ASEAN region.
Leform’s Managing Director stated that this partnership marks a significant step in the company’s development, helping to strengthen its strategic position and enhance its ability to seize new growth opportunities. HX300YD+ZM steel strip ,The announcement follows a visit to Japan last week.
Under the agreement, Leform will maximize its procurement of base steel products from NTSC and NS Trading Malaysia, while also collaborating with the NTSC Malaysia team on sourcing steel for new projects.
In early March, at Leform’s request, NTSC participated in the company’s private placement through NS Trading Malaysia, acquiring an approximately 9% stake for RM25 million (approximately US$6.3 million). HX300YD+ZM steel strip ,Leform plans to build an integrated warehousing and logistics complex in Selangor to improve inventory management efficiency, accelerate delivery times, and handle larger orders. The proceeds from this financing will primarily be used for raw material procurement and the aforementioned expansion project.
In terms of production capacity, the Leform plant is equipped with multiple ERW steel pipe production lines, three guardrail production lines, three slitting lines, and four shearing lines. While its nominal capacity stands at 120,000 tonnes per year for steel pipes and guardrails and 160,000 tonnes per year for sheet processing, actual output remains significantly below design levels.
Although NTSC’s specific strategic intentions regarding Leform are not yet fully clear, the investment of RM 25 million (approximately JPY 1 billion) and an equity stake of nearly 10% demonstrate a strong commitment to this strategic move.
From a synergy perspective, Nippon Steel can secure a stable export channel for its sheet products, supplying Leform with items such as coated sheets, hot-rolled coils, and galvanized sheets. These products can be sourced either from its domestic Japanese plants or from its Thai subsidiaries, NS-Siam United Steel and G Steel Public. Notably, G Steel—located in Rayong, Thailand—primarily produces hot-rolled coils used in construction and ERW steel pipe manufacturing.
