We refer to the abovementioned article published in The Edge Weekly, October 6-12, 2025 titled "Lion Industries could shut down Amsteel's two mills" on pages 12 and 14.

The Edge in its recent email to Lion Group had asked whether 'Lion Industries Corporation Berhad is looking at shutting down two mills in Bukit Raja, Klang and Banting, held under Amsteel Mills Sdn Bhd'. We had responded that Amsteel Mills Sdn Bhd is in operation though the steel industry, domestically and globally, is facing challenging times. The company is continuing to focus on improving operational efficiencies, strict cost containment and diversifying its product range while exploring new opportunities and fostering sustainable growth.

However, the headline in the article by The Edge: "Lion Industries could shut down Amsteel's two mills" poses much concern and worry to our stakeholders especially to our employees in Amsteel Mills.

We wish to reiterate that Amsteel Mills in Bukit Raja, Klang is in operation, since 1978. As the machinery and equipment in the plant have been in use for the last 47 years, we are looking to upgrade and install new machinery and processes, and seeking strategic partners who can provide the new technologies and processes. This will make the plant more efficient and cost-competitive, and keep abreast with market conditions and demands.

Amsteel's other plant in Banting is temporarily shut down due to the high cost of operation especially with the hike in electricity tariffs which made it economically not feasible to operate. We are exploring options to revitalise the operations including looking for strategic partners to introduce new process and new products for this plant, and will make the necessary announcement when a suitable partner is ready.

We wish to stress that the steel business is still very much the core business of Lion Industries Corporation Berhad and have no plans to shut Amsteel Mills other than for upgrading purposes.