Corporate: Bisalloy Steel cements deal with Singapore’s Leong Jin to sell its steel Down Under
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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.
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