Tashin Steel Sdn. Bhd. Company Profile
Background
Company Overview
Tashin Steel Sdn. Bhd. (TSSB), established on October 30, 1998, is a Malaysian steel processing and manufacturing company headquartered in Perai, Penang. As a subsidiary of Tashin Holdings Berhad, TSSB specializes in processing steel coils into slit coils and steel sheets, manufacturing steel products such as pipes, flat bars, square bars, expanded metals, checkered plates, and C Purlins, and trading various steel products.
Mission and Vision
TSSB is committed to delivering high-quality steel products and services, aiming to be a leading supplier in the steel industry by focusing on customer satisfaction, product excellence, and continuous improvement.
Industry Significance
With over two decades of experience, TSSB has become a key player in Malaysia's steel industry, serving diverse sectors including automotive, furniture, electronics and electrical, construction, and engineering fabrication.
Key Strategic Focus
Core Objectives
- Expansion of Production Capacity: TSSB is focused on increasing its production capacity to meet growing market demand.
- Diversification of Product Offerings: The company plans to venture into the manufacturing of wire mesh products to reduce dependency on third-party suppliers and enhance profitability.
Areas of Specialization
- Steel Processing: Slitting and shearing of steel coils into slit coils and steel sheets.
- Steel Product Manufacturing: Production of steel pipes, flat bars, square bars, expanded metals, checkered plates, and C Purlins.
- Steel Product Trading: Trading of steel plates, steel pipes, round bars, angle bars, and wire mesh.
Key Technologies Utilized
TSSB employs advanced slitting and shearing machines, rotary/auto shearing machines, and packing machines to enhance production efficiency and product quality.
Primary Markets Targeted
The company's products cater to various industries, including automotive, furniture, electronics and electrical, construction, and engineering fabrication.
Financials and Funding
Funding History
In August 2019, Tashin Holdings Berhad was listed on Bursa Malaysia's ACE Market, raising RM34.41 million through its initial public offering (IPO).
Utilization of Capital
Proceeds from the IPO were allocated for capital expenditure to support business expansion into wire mesh production, upgrading the existing steel processing line, purchasing industrial land for a new factory, supplementing working capital, and covering listing expenses.
Financial Performance
In the financial year ended December 31, 2021, TSSB reported a revenue of RM388.65 million, a significant increase from RM239.15 million in the previous year. Profit before taxation rose six-fold to RM84.20 million from RM12.02 million, and profit after taxation increased by 575.65% to RM62.62 million.
Pipeline Development
Expansion Plans
- New Factory Construction: TSSB plans to build a 90,000 sq ft factory in Seberang Perai, Penang, to accommodate new wire mesh production lines and enhance manufacturing capabilities.
- Acquisition of Industrial Land: In April 2021, TSSB's subsidiary, Tashin Hardware Sdn. Bhd., entered into agreements to acquire two contiguous pieces of industrial land and buildings in Seberang Perai Industrial Estate Phase IV for RM43.5 million. The acquisition is expected to increase annual production capacity to 222,720 tonnes from 149,520 tonnes.
- Equipment Upgrades: The company has allocated funds to purchase new slitting lines, rotary/auto shearing machines, and packing machines to enhance production efficiency.
Technological Platform and Innovation
Proprietary Technologies
TSSB utilizes advanced slitting and shearing machines, rotary/auto shearing machines, and packing machines to enhance production efficiency and product quality.
Scientific Methodologies
The company employs stringent quality control measures and continuous improvement methodologies to ensure product excellence and customer satisfaction.
Leadership Team
Key Executives
- Lim Choon Teik: Managing Director of Tashin Holdings Berhad, overseeing strategic direction and operations.
- Datuk Toh Yew Peng: Group Managing Director of Prestar Resources Bhd, the parent company of Tashin Steel Sdn. Bhd., providing strategic oversight.
Leadership Changes
As of the latest available information, there have been no significant recent changes or appointments within TSSB's leadership team.
Competitor Profile
Market Insights and Dynamics
The Malaysian steel industry is projected to grow, with demand for steel processing expected to increase from 4.89 million tonnes in 2017 to 5.1 million tonnes in 2020, at a compound annual growth rate (CAGR) of 1.41%. The consumption of steel wire products, such as steel pipes and tubes, is forecasted to grow at a 13.3% CAGR to 2.85 million tonnes in 2020 from 2.56 million tonnes in 2017.
Competitor Analysis
- Alliance Steel (M) Sdn. Bhd.: A major player
