PETALING JAYA: Ta Win Holdings Bhd has inked a deal, valued at RM2.6bil, for the exclusive supply of copper rods and wires as well as other copper-related products through Posco International Corp to copper foil manufacturers based in South Korea, including for their overseas production plants.

       The integrated Malaysian manufacturer of copper products, entered into a sales contract with Posco through its wholly-owned subsidiary Ta Win Industries (M) Sdn Bhd (TWI) yesterday.

       The sales contract is effective for three years from Jan 1, 2022 to Dec 31, 2024.

       TWI also entered into a memorandum of understanding (MoU) with Posco, which will entail TWI supplying 65,000 tonnes of copper products during the contract term, starting with 10,000 tonnes in the first year.

       For the three years, TWI expects revenue of RM2.6bil based on the London Metal Exchange (LME) copper price of US$9,440 per tonne and exchange rate of US$1 to RM4.15 as at Oct 28, 2021.

       “Leveraging Posco’s extensive network in the electric vehicle (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,” said Ta Win group managing director Datuk Seri Ngu Tieng Ung.

       The three-year contract term 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,” he added.