Asset Acquisitions and Disposals::Acquisition of Malaysian cold rolling and coated facilities

Issuer & Securities

Announcement Title: Asset Acquisitions and Disposals
Date &Time of Broadcast: 05-Nov-2018 06:40:38
Status: New
Announcement Sub Title: Acquisition of Malaysian cold rolling and coated facilities
Announcement Reference: SG181105OTHRA822
Submitted By (Co./ Ind. Name): BlueScope Steel Limited
Designation: Company Secretary
Effective Date and Time of the event: 05/11/2018 08:00:00
Description (Please provide a detailed description of the event in the box below): NS BlueScope Malaysia today announced it has agreed to acquire YKGI Holdings Berhad's (YKGI) manufacturing facility in Klang, Malaysia for a purchase price of A$42 million.

The assets comprise a Push-Pull Pickling Line, Cold Rolling Mill, Continuous Galvanising Line and a Continuous Colour Coating Line and will form part of BlueScope's joint venture operations in South East Asia with NSSMC.

This acquisition is consistent with BlueScope's strategy to grow its coated and painted steel business and provides a cost-effective source of cold rolled feed to supply to NS BlueScope Malaysia. It provides options to further lower the cost of feed supply in other operations in the ASEAN JV and offers future growth potential via additional coating and painting capacity.

The acquisition is subject to typical conditions precedent including YKGI shareholder approval and regulatory approvals. Completion is expected in the March 2019 quarter.

Total size =139K