by SHAFIQQUL ALIFF / pic credit: ta-win.com
TA WIN Holdings Bhd is making inroads into the electric vehicle (EV) segment through its wholly owned subsidiary, Ta Win Industries (M) Sdn Bhd (TWI), which secured a sales contract from 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 contract is effective for a three-year period from Jan 1, 2022, to Dec 31, 2024, Ta Win stated in a release yesterday.
Ta Win Group MD Datuk Seri Ngu Tieng Ung said 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.
“We are pleased to further expand our presence in the EV market with this exclusive supply contract with Posco,” he said.
Posco is a global company listed on both the Korea Exchange KOSPI Market and New York Stock Exchange.
TWI also entered into a memorandum of understanding with Posco on the quantity to be delivered, which will entail TWI supplying 65,000 metric tonnes (MT) of copper products during the contract term, starting with 10,000MT in the first year.
TWI anticipates generating RM2.6 billion in revenue over the course of the three-year contract, based on the LME copper price of US$9,440 (RM39,176) per MT.
Ngu added that given the three-year contract term, the company is expected to have long-term financial visibility and contribute significantly to the group’s top and bottomline 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 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 the future mobility parts business.