It is reported that China Shougang Group has tied up with Malaysia Hiap Teck to build a MYR 1.8 billion steel mill, its first such investment outside of China.

A joint statement says the mill in Malaysia northern Terengganu state will produce 700,000 tons of steel slabs a year to cater to Southeast Asia growing markets when completed in mid-2013. It said Monday the mill, run by a joint venture called Eastern Steel will later be expanded to raise output to 1.5 million tons.

Shougang, one of China top steel makers, controls 40% of Eastern Steel Hiap Teck holds 55%.

Officials say there is strong demand in Southeast Asia which imports more than 4 million tonnes of steel slabs annually mostly from eastern Europe.

(Sourced from www.washingtonpost.com)