PETALING JAYA: Ta Win Holdings Bhd, which continues to make inroads into the electric vehicle (EV) segment, yesterday entered into a sales contract through its wholly owned subsidiary Ta Win Industries (M) Sdn Bhd (TWI) with South Korea’s Posco International Corp, for the exclusive supply of copper rods and wires as well as other copper related products through Posco to copper foil manufacturers based in South Korea including for their overseas production plants.
The sales contract is effective for a three-year period from Jan 1, 2022 to Dec 31, 2024.
TWI also entered into a memorandum of understanding with Posco in respect of the quantity to be delivered, which will entail TWI supplying 65,000 metric tons of copper products during the contract term starting with 10,000 metric tons in the first year. For the duration of the three-year contract, TWI expects to generate an aggregated revenue of RM2.6 billion based on the LME copper price of US$9,440 per metric ton.
Ta Win group managing director Datuk Seri Ngu Tieng Ung said leveraging on Posco’s extensive network in the EV battery components and materials sector, the group is well-positioned with the capacity and capabilities to cater to growing demand in the global EV sector as a supplier of high-quality copper rods and wires, which are the raw materials of copper foil widely used as the anode current collector for EV batteries.
“Given the three-year contract term, this is expected to have long-term financial visibility and contribute significantly to the group’s top and bottom line performance moving forward. This is also well-aligned to support Posco’s expansion of its core raw material business for secondary battery materials (EV batteries), as demand continues to increase owing to the rapid growth of eco-friendly EV and energy storage systems.”
Posco International Corp is a subsidiary of Posco, which is listed on both the Korea Exchange Kospi Market and New York Stock Exchange. Posco International is principally engaged in trading of steel, chemical products, non-ferrous metals and automotive parts and components, resources development and infrastructure development. The company has plans in place to actively pursue business opportunities in traction motor cores and other EV parts, rechargeable battery materials and the hydrogen economy as new growth drivers for the company, as it continues to expand its business presence in emerging markets and strengthen its focus on future mobility parts business.