Nippon Steel Trading invests $6.3 million in Malaysian producer Leform

Malaysian steel pipe and flat steel producer Leform Berhad will attract a strategic investor in the form of NST Trading Malaysia Sdn Bhd, a subsidiary of Nippon Steel Trading Corporation. The parties have signed a private placement agreement under which Leform plans to raise approximately $6.3 million (25 million Malaysian ringgit).

Under the terms of the agreement, NST Trading Malaysia will subscribe to 148.1 million new ordinary shares of Leform at a price of approximately $0.043 per share (RM0.1688). The placement is being carried out as part of a private placement program of up to 10% of the company’s existing share capital. Upon completion of the transaction, the Japanese partner will effectively acquire a 10% stake in the Malaysian manufacturer.

Leform emphasizes that the deal will be an important milestone for the group as it will strengthen cooperation with an internationally recognized trading player in the steel sector. The company expects synergies in supply chains, product distribution, and regional presence development. Leform Managing Director Low Kok Thye called Nippon Steel Trading’s participation a testament to its confidence in the group’s business model and long-term prospects.

Leform plans to use the funds raised primarily to purchase raw materials. This will enable it to build up stocks before orders are received, increase the speed of deliveries to customers, and purchase steel ahead of possible price increases, thereby improving gross profitability. The company also expects to strengthen its position in the national steel supply chain with the launch of an integrated warehouse complex in Serendah, which should optimize logistics and inventory management.

Leform remains cautiously optimistic about the industry’s prospects, expecting support from infrastructure projects in Malaysia and broader industrial growth in the region.

In September 2025, Malaysia presented a roadmap for the development of the country’s metallurgical industry. The plans include reforming the industry to manage excess capacity, restructuring licensing, and preparing for decarbonization so that the sector becomes «completely green» by 2050.