HG Metal Manufacturing Limited announced on Dec, 10 2025 that its wholly-owned subsidiary, HG Metal Investments Pte. Ltd., has agreed to subscribe for 18 million non-redeemable, non-cumulative Class B preference shares in Malaysia-based Eden Flame Sdn. Bhd. for RM18 million (about S$5.68 million).

The Class B shares are convertible into ordinary shares on a 1:1 basis and, if fully converted, would give HG Metal an estimated 4.4 per cent stake in Eden Flame’s enlarged share capital. The payment will be split into RM9 million on completion of the deal and RM9 million through subsequent capital calls. Funding will come from HG Metal’s internal resources and proceeds previously raised from rights issues.

Eden Flame, currently a wholly owned subsidiary of Green Esteel Pte. Ltd., is building a 500,000-tonne-per-year electric arc furnace steel plant in Pasir Gudang, Johor Bahru, slated to start operations in the third quarter of 2026 with an initial focus on 10-40 mm rebar.

Because Green Esteel owns 52.59 per cent of HG Metal, the subscription is deemed an interested person transaction. Its size represents 3.9 per cent of the group’s latest audited net tangible assets, falling below the thresholds that require shareholder approval under Singapore Exchange rules.

HG Metal said the investment is part of a strategy to secure reliable, competitively priced supplies of low-carbon steel and to meet rising demand for greener construction materials under Singapore’s Green Plan 2030.