KUALA LUMPUR: Anzo Holdings Bhd has secured a contract worth RM1.3 billion to supply millberry/candy copper scrap over 40 months indirectly to a steel-making group in South Korea effective from July 1.
Anzo and its subsidiaries entered into a supply agreement with CSTME Resources Sdn Bhd in a close door ceremony here today.
CSTME is one of the major importers and exporters of non-ferrous materials in Malaysia, specialising mainly in copper products.
The company has agreed to buy birch/cliff copper scrap or berry/candy copper scrap from Anzo for exports to South Korea.
The items will then be dismantled, shredded, segregated and graded, before they are bundled and delivered to buyers.
In a filing with Bursa Malaysia, Anzo said it would supply up to 60,000 tonnes of copper scrap to CSTME at RM23,000 per tonne over 40 months.
Anzo said the deal was expected to strengthen its trading business for sustainable earnings in a long period.
"It will also create business opportunities in international export market," it added.
Trading in Anzo's securities was suspended yesterday at the request of the company with effect from 4.22 pm, pending the announcement.
The stock remained untraded today. Its last traded price was 15 sen.
Anzo has, in the last two years, been actively seeking new business to diversify its income stream after posting losses for many quarters because of market conditions.