ASTEEL Group Berhad (“ASTEEL”) wishes to announce that its wholly-owned subsidiary namely, ASTEEL (Sarawak) Sdn Bhd (“ASWK”) has initiated adjudication proceedings under the Construction Industry Payment and Adjudication Act 2012 (“CIPAA”) against Dynaciate Engineering Sdn. Bhd. (“Dynaciate”).

Under and by virtue of the Sub-Contract Agreements dated 14 March 2022, 14 June 2022 and 1 December 2022 for Sub-Contract Work: Steel Structure Erection Work, Equipment Erection Work, AG Piping Erection Work and Roofing & Cladding Installation Work for the Sarawak Methanol Project at KM3 Jalan Similajau in Tanjung Kidurong, Bintulu, Sarawak, Dynaciate engaged ASWK for the aforementioned Sub-Contract Work.

ASWK is claiming against Dynaciate for the outstanding progressive claims and overdue interest amounting to RM7,723,949.77. The above legal proceedings is in the best interest to preserve ASWK’s rights in the Sub-Contract Agreements.

The above legal proceedings initiated by ASWK is not expected to have any material effect on the earnings, net assets and gearing of ASTEEL Group for the financial year ending 31 December 2025. The legal proceedings is also not expected to have any material operational impact on ASTEEL Group.

None of the directors and/or major shareholders of ASTEEL and/or person connected with them has any interest, direct or indirect, in the abovementioned legal proceedings.

ASTEEL will make further announcements if there are any material developments arising from the above legal proceedings.

This announcement is dated 16 June 2025.