IPO: Tatt Giap Group

It has identified new industrial steel products to develop, in a move to tap new market segments. One of these products was electro galvanised (EG) steel coils, a secondary flat steel product. They have identified this segment for expansion because EG steel is a critical input for the electronic, electrical, automotive and office automation industries.

Consumption of EG steel coils in Malaysia for 2007 was about 324,000 tonnes, (of which) 97% was imported as there is only one local producer.

Its EG line had been set up near the company’s plant in Prai Industrial Estate and was likely to commence production next month (Jan 2009). The EG steel coil production facility is worth about RM100mil. It will have a production capacity of about 150,000 tonnes per annum.

The group had further invested in the production of stainless pipes of various diameters and identified downstream products such as stainless steel pipe fittings and metal parts for further expansion.

The other products we will be looking at in future are ‘butt weld fittings’, which consist of elbows, reducers, tee joints, caps and lapped joints. There is potential growth in this segment because pipe fittings are natural extensions of tubes and pipes which would complement our existing range of tube and pipe products. Butt weld fittings are highly in demand and command lucrative selling prices in the market.

The group started in 1978 with the founding of Tatt Giap Hardware Sdn Bhd as as an importer, exporter and stockist of stainless steel materials for distribution to a wide range of end-users from diverse industries.

Under the stewardship of the Siah family, Tatt Giap Hardware has grown in stature by diversifying its product range through active sourcing and strong networking with stainless steel producers in Japan, South Korea, Taiwan and Europe.

The group currently operates seven facilities in Penang, Selangor and Johor.