Taiwan's China Steel Corp, the island's largest steelmaker by revenue, is evaluating an investment in Malaysia's Megasteel Sdn Bhd, a subsidiary of Lion Group Bhd, sources reported.
The move is in line with China Steel' Corp's effort to establish a global strategic alliance.
China Steel is in talks with Megasteel, and it will give advice on the latter's blast furnace plans. However, no final decision has been made.
China Steel Executive Vice President David K.L Du said that the company is currently evaluating the investment. He refused to make further comment as the company has signed a confidentiality agreement.
A spokesperson from Lion Group confirmed the deal could involve an investment of NT$10 billion, or US$347 million, from China Steel.
The two companies will share technology after the deal is completed.
In addition, China Steel has discussed with several mainland steelmakers and a Japanese steelmaker to jointly invest in overseas iron ore and coking coal mines, according to earlier reports.
China Steel is currently in talks with mainland China's Shougang Group, Baosteel Group Co, Angang Iron & Steel Group Co and Wuhan Iron & Steel Group Co on potential acquisition of mines in overseas markets.