Hiap Teck Venture Bhd (HTVB) expects its integrated steel mill in Kemaman, Terengganu to contribute 50 per cent to the group’s profit by 2014 due to the strong demand in the region.
By 2014 onwards, roughly 50 per cent of the group’s profit will come from
the mill when it starts operations, with the remainder derived from its existing
subsidiaries, said its executive director Low Choong Sing.
HTVB and China Shougang Group (CSG) have formed a joint-venture company,
Eastern Steel Sdn Bhd, to build a steel mill in Kemaman. It will be based at the Kemaman Heavy Industrial Park, a project in the East Coast Economic Region to boost heavy industry activities in Kemaman.
“Currently, steel imports to Asia are worth four million metric tonnes (MT),
mainly from Commonwealth of Independent States (CIS) and Ukraine,” he said at the media briefing before the the mill's groundbreaking ceremony here today.
Low said shipments from Ukraine to Malaysia take between 45 to 60 days with
the freight cost at US$60 per tonne.
A mill in Kemaman will be a logistic advantage as it is near Thailand,
Vietnam, Cambodia, the Philippines and Indonesia, which are less than one day
shipment time, he said.
“We are not looking only at the local market, but also at the Asian market.
The shipment time is faster and the freight cost is lower. “With the tie-up with CSG, we believe our products will have a competitive advantage,” he said.
Low said of the annual production of 700,000 MT in the first stage of phase
one of the mill, about 60 per cent will go to the domestic market and the
remaining 40 per cent to the Asian market.
Terengganu Menteri Besar Datuk Seri Ahmad Said officiated the ceremony. Also present were HTVB chairman Tan Sri Alwi Jantan, CSG chairman Zhu Jimin
and China's ambassador to Malaysia Chai Xi. -- Bernama
By 2014 onwards, roughly 50 per cent of the group’s profit will come from
the mill when it starts operations, with the remainder derived from its existing
subsidiaries, said its executive director Low Choong Sing.
HTVB and China Shougang Group (CSG) have formed a joint-venture company,
Eastern Steel Sdn Bhd, to build a steel mill in Kemaman. It will be based at the Kemaman Heavy Industrial Park, a project in the East Coast Economic Region to boost heavy industry activities in Kemaman.
“Currently, steel imports to Asia are worth four million metric tonnes (MT),
mainly from Commonwealth of Independent States (CIS) and Ukraine,” he said at the media briefing before the the mill's groundbreaking ceremony here today.
Low said shipments from Ukraine to Malaysia take between 45 to 60 days with
the freight cost at US$60 per tonne.
A mill in Kemaman will be a logistic advantage as it is near Thailand,
Vietnam, Cambodia, the Philippines and Indonesia, which are less than one day
shipment time, he said.
“We are not looking only at the local market, but also at the Asian market.
The shipment time is faster and the freight cost is lower. “With the tie-up with CSG, we believe our products will have a competitive advantage,” he said.
Low said of the annual production of 700,000 MT in the first stage of phase
one of the mill, about 60 per cent will go to the domestic market and the
remaining 40 per cent to the Asian market.
Terengganu Menteri Besar Datuk Seri Ahmad Said officiated the ceremony. Also present were HTVB chairman Tan Sri Alwi Jantan, CSG chairman Zhu Jimin
and China's ambassador to Malaysia Chai Xi. -- Bernama
