TSA Group embarks on expansion plan post-ipo

Industrial-hardware provider TSA Group Bhd will focus on its expansion plans to meet the demand from the local market, which is its largest, says group managing director Chew Kuan Fah.

Chew said the company’s proposed new production facility in Semenyih, Selangor, is expected to manufacture 48,000 tonnes of cold-rolled stainless steel coils per year.

The plant’s construction is set to start in the third quarter of this year and is slated to be completed and begin operations in the third quarter of 2026.

“The consumption of stainless steel by the local market right now amounts to about 10,000 tonnes a month. The 4,000 plus tonnes a month (coming from the new facility) will partly be for our use also,” he told reporters at the company’s listing on the ACE Market of Bursa Malaysia yesterday.

Apart from Malaysia, the group has a presence in Singapore, Thailand, Australia, Bangladesh, France, Indonesia, the Maldives, New Zealand, the Philippines, Sri Lanka and the UK.

Chew said there are a number of industries that require stainless steel including food and beverage (F&B), green energy, hospitals, and oil and gas (O&G) among others.

“The F&B sector needs plenty of stainless steel for its equipment and cold rooms, while the O&G sector needs low-carbon steel products. The green-energy industry, particularly solar power, requires stainless steel for their brackets. Many of our customers today are recurring ones,” he said.

On its business model, Chew said TSA Group focuses on daily sales and has been catering to a mature market since 1993.

“We are very positive on the outlook this year because our customers know us well and when they are looking at acquiring stainless steel, they come to us,” he said, adding the group has roughly 3,600 customers at present.

TSA Group raised Rm42.53mil from its initial public listing (IPO) of which Rm20mil will be used for repayment of its bank borrowings, Rm5.1mil for the construction of its new plant, another Rm5.1mil for listing expenses and Rm12.3mil for working capital.

The group debuted on the ACE Market at 58 sen, for a premium of three sen over its IPO price of 55 sen. The heavily traded stock closed 2.5 sen higher at 57.5 sen after hitting a high of 62.5 sen and low of 51.5 sen in intraday trade.