Many view Kinsteel-Perwaja ties as ‘strong’

THE alliance forged between two well-known steel players Kinsteel Bhd and Perwaja Holdings Bhd has always been an interesting case study.

It all started when Kinsteel, which belongs to Pahang steel tycoon Tan Sri Pheng Yin Huah decided to acquire 51% stake in debt-laden Perwaja Steel Sdn Bhd and its Gurun assets from Maju Holdings Sdn Bhd in late-2005.

While some quarters admired Pheng’s true grit to take on the controversial company with about RM800mil debts, others remained skeptical over Perwaja’s huge debts and its implication on Kinsteel.

To recap, Perwaja was set up in 1982 by HICOM Bhd, a company owned by the Government in collaboration with Japan-based Nippon Steel Corp to fulfill Malaysia’s heavy industrial policy.