Asdion Bhd secures its first logistic contract for the supply of bauxite

IT firm Asdion Bhd is venturing into logistics business securing its first contract worth US$112mil (RM414mil) with Hong Kong International Mining Exchange Ltd (HKIM) for the supply of bauxite, the company told a local newspaper on Wednesday.

Under the agreement, Asdion’s subsidiary will provide logistics-related services to HKIM for the delivery of a total of four million dry tonnes of bauxite at a base price of US$28 per dry tonne.

The first delivery shall commence in July, according to Asdion’s announcement.

StarBiz first reported in January that Asdion, a loss-making software maker, was expected to acquire private firm TAZ Logistics Sdn Bhd, marking its entry into the logistics and transportation sector.

The company subsequently confirmed this and in February, paid RM6mil cash to purchase 51% of TAZ from Datuk Mohamed Ridzuan Nor Md, who is TAZ’s director and major shareholder and the son of former Finance Minister II Tan Sri Nor Mohamed Yakcop.

The newly appointed Ridzuan had said back in April that he expected Asdion to come out of the red zone within six months aided by the earnings from TAZ Logistics.