Steel giant China Shougang Group is set to build a MYR1.8 billion ($580 million) steel mill together with a Malaysian company in the Southeast Asian country, the two partners said Monday.
The investment marks Shougang's first steel mill outside China, according to a news release. The company has an iron ore mining company in South America.
"We see tremendous potential in the steel mill industry in Malaysia, and we are very excited as this is Shougang's first steel mill investment outside of China," Shougang chairman Zhu Jimin was quoted as saying in the statement.
According to the joint news release, Shougang and Malaysia's Hiap Teck Venture Bhd. (5072.KU) have formed Eastern Steel to build the mill in eastern Terengganu state. Shougang has a 40% stake in Eastern Steel.
Work started Monday, the statement said. The mill is expected to be able to make 700,000 metric tons of steel products a year, once the first phase costing MYR750 million is completed by mid-2013.
An additional MYR1.05 billion will then be invested to raise production capacity to 1.5 million metric tons per year, the statement said.
Shougang is a 2011 Fortune Global 500 company with an annual crude steel output of more than 30 million metric tons.
The statement said steel demand increased in Southeast Asia last year with Malaysia producing 29% of all the regional crude steel.
The investment marks Shougang's first steel mill outside China, according to a news release. The company has an iron ore mining company in South America.
"We see tremendous potential in the steel mill industry in Malaysia, and we are very excited as this is Shougang's first steel mill investment outside of China," Shougang chairman Zhu Jimin was quoted as saying in the statement.
According to the joint news release, Shougang and Malaysia's Hiap Teck Venture Bhd. (5072.KU) have formed Eastern Steel to build the mill in eastern Terengganu state. Shougang has a 40% stake in Eastern Steel.
Work started Monday, the statement said. The mill is expected to be able to make 700,000 metric tons of steel products a year, once the first phase costing MYR750 million is completed by mid-2013.
An additional MYR1.05 billion will then be invested to raise production capacity to 1.5 million metric tons per year, the statement said.
Shougang is a 2011 Fortune Global 500 company with an annual crude steel output of more than 30 million metric tons.
The statement said steel demand increased in Southeast Asia last year with Malaysia producing 29% of all the regional crude steel.
(END) Dow Jones Newswires
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