The Star reported that Eastern Steel Sdn Bhd has secured funding for the construction of its MYR 1.8 billion steel mill in the Kemaman Heavy Industrial Park.

Sources said that the banks involved are HSBC, Bank of China and Industrial and Commercial Bank of China.

It isn't clear what the debt equity ratio for the project is but the debt funding from the banks would be announced this week.

Eastern Steel is a JV between China Shougang Group and Hiap Teck Venture Bhd.

The first stage of phase one of the mill, with an annual production capacity of 700,000 tonnes of steel, is expected to be completed by mid 2013 at a cost of MYR 750 million.

(Sourced from www.thestar.com.my)