KUALA LUMPUR: Anzo Holdings Bhd may have bagged a new contract worth RM1.3 billion to RM1.5 billion to export copper scrap to Japan and South Korea.
Sources said the company might announce the potential deal as early as next week.
It is believed that Anzo will start exporting the copper scrap to Japan and South Korea effective next month via a company with an AP (approved permit) licence.
The contract will create new business opportunities for Anzo in the export markets, said sources with knowledge on the matter.
The stock traded heavily yesterday, rising as much as 5.5 sen just after midday, before closing the day at 14 sen.
Some 232.4 million shares changed hands.
Anzo was one of the most active stocks traded on Bursa Malaysia.
The potential copper contract will be the second major win for Anzo this year.
In June, Anzo won a RM1.3 billion contract to supply copper scrap indirectly to a steel-making group in South Korea effective from July 1.
Anzo, which is being looked at by global funds from Hong Kong and China, had entered into a supply agreement with CSTME Resources Sdn Bhd, one of the major importers and exporters of non-ferrous materials in Malaysia.
In a recent filing with Bursa, Anzo had said that it would supply up to 60,000 tonnes of copper scrap to CSTME at RM23,000 per tonne over 40 months.
It is unclear if Anzo will also work with CSTME, which has an AP licence, for the new job.
Anzo, which is involved in property development and timber products, had 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.
Its managing director Datuk Eddie Chai Woon Chet told the New Straits Times previously that Anzo was expected to turn around in the current year ending July 31, 2020.
This could be possible given that Anzo has already supplied close to 4,500 tonnes of copper to South Korea, worth about RM90 million since July 1.