Six weeks after Illawarra-based steel maker Bisalloy (ASX:BIS) announced a memorandum of understanding (MoU) with Singaporean steelmaker Leong Jin to sell the latter’s products, the parties have sealed the deal.

Bisalloy is Australia’s only manufacturer of high-strength structural, wear-resistant and armour steel plates. Bisalloy products are used in the mining, construction and defence sectors – one example is the federal government’s new submarine fleet.

Meanwhile, Leong Jin manufactures steel in Changzhou, China.

Bisalloy CEO Greg Albert said the deal was a win for both companies and that Bisalloy had undertaken testing to ensure it met Australian standards.

“A spirit of partnership between the two companies has seen an open sharing of technical knowledge and expertise thereby allowing us to confirm that the Leong Jin product can readily complement the Bisalloy steel product range in Australia,” he told shareholders this morning.

While this morning’s announcement did not include comment from Leong Jin, managing director Ho Che Fei said last month the deal would create synergies for both companies and strengthen their competitive position.

 

Read More: Australia’s next-generation submarines will be armoured with Bisalloy’s high-tech steel

 

In other ASX corporate news today:

Village Roadshow (ASX:VRL) got another takeover offer. Private equity firm BGH Capital wants to buy the company for $4 per share. Village’s board said it was assessing the proposal in conjunction with Pacific Equity Partners’ offer.

The ASX’s only kava stock, Fiji Kava (ASX:FIJ), told shareholders it made significant progress in the last quarter. Its revenues were 237 per cent higher than the December 2018 quarter, although still only $147,000.

London-headquartered wireless communications tech stock Etherstack (ASX:ESK) dropped over 20 per cent after releasing its quarterly. While it came without comment, the catalyst appears to be that it has only $US931,000 ($1.36m) in cash but estimates $US1.4m ($2.05 million) in outflows next quarter.

The company announced a $520,000 order from Ergon Energy to the market just three minutes later but it failed to prevent the stock falling.

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