KUALA LUMPUR: Ta Win Holdings Bhd 's wholly owned subsidiary Ta Win Industries (M) Sdn Bhd has entered into a sales contract with South Korea's Posco International Corp for the exclusive supply of copper rods, wires and related products to copper foil manufacturers in South Korea, including their overseas production plants.

       The sales contract is effective for a three-year period from Jan 1, 2022 to Dec 31, 2024.

       The group said in a Monday statement that it had also entered into a memorandum of understanding with Posco for the quantity of 65,000 metric tonnes of copper products to be supplied during the contract term, starting with 10,000 metric tonnes in the first year.

       Ta Win expects to generate an aggregated revenue of RM2.6bil based on the London Metal Exchange (LME) copper price of US$9,400 per metric tonne and the foreign currency exchange rate of US$1:RM4.15 on Oct 28, 2020.

       Ta Win managing director Datuk Seri Ngu Tieng Ung said the supply contracts will expand the group's presence in the electric vehicle (EV) market.

       "Leveraging 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," he said.

       He added that the group 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.