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Eastern Steel starts construction of steel mill in Kemaman
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Wednesday, 07 Dec 2011

The Sun Daily reported that Eastern Steel Sdn Bhd, a JV between Hiap Teck Venture Bhd and China Shougang Group, has commenced construction of the first phase of its MYR 1.8 billion integrated steel mill in the East Coast Economic Region's Kemaman Heavy Industrial Park.

Stage 1 of Phase 1 which costs MYR 750 million will be completed by mid 2013 and will have a production capacity of 700,000 tonnes of steel products annually. Stage 2 will cost an additional MYR 1.05 billion and will increase the annual production capacity to 1.5 million tonnes.

Mr Seri Ahmad Said chief minister of Terengganu said in a statement that "While creating over 2,000 jobs in Terengganu, this steel mill will develop small and medium sized enterprise clusters to support the heavy industry in the area. Terengganu residents can also expect to benefit from the transfer of technical expertise and get a leg up into the growing steel industry."

Mr Zhu Jimin chairman of China Shougang said that "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. Malaysia is poised to tap into the market with its good business climate and its strategic location between East and South Asia and in the centre of the Asia Pacific region."

Mr Tan Sri Alwi Jantan executive chairman of Eastern Steel said that the company has commenced discussions with TATI University College to provide opportunities to local residents and to enable them to participate in the steel industry.

It may be noted that the demand for steel increased in all ASEAN countries in 2010 with Malaysia taking the lead in the production of crude steel, dominating 29% of regional production.

(Sourced from

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