KUALA LUMPUR (Dec 8): MELEWAR INDUSTRIAL GROUP BHD [] subsidiary Melewar Integrated Engineering Sdn Bhd (MIE) has signed a memorandum of understanding (MoU) with KAZMY Steel Company (KAZMY) to appoint MIE as the turnkey design and built contractor for the MycroSmelt plant in Almaty, Kazakhstan.
KAZMY is the special purpose vehicle designated to launch the project in Kazakhstan, to fulfill the high demand for top quality building materials in the republic, using MycroSmelt TECHNOLOGY [].
The planned investment is estimated to cost RM178 million, and will be represented by an equal 50% participation by both MIE and KAZMY, in which 30% will be made directly by shareholders of the joint venture and 70% will be in the form of bank lending from Kazakh financial institutions.
Under the MoU signed on Thursday, MIE would be the lead technical development engineer and the project manager.
It will provide the necessary expertise, experience and resources to design and build the MycroSmelt plant.
The CONSTRUCTION [] is planned to start in second quarter of 2012, with its target completion date in 2013.
The projected annual capacity of the MycroSmelt plant is expected to be approximately 110,000 tonnes per year.
Melewar executive chairman Tunku Datuk Ya'acob Tunku Tan Sri Abdullah said the MycroSmelt technology provided tremendous cost savings in the production of integrated re-bar and other long product, as it uses high efficient induction furnaces.
"With energy efficiency of a large-scaled facility, the MycroSmelt Steel facility can be located close to urban areas and companies can enjoy savings from not having to transport scrap iron over long distances, and transporting the finished steel products back again.
"MycroSmelt technology enables to smelt and process scrap iron in small quantities, with comparable unit operating cost and capital expenditure of large scale facilities," he said.
The MoU between MIE and KAZMY was signed by Tunku Ya'acob and Temujin Nukenov, the managing director of the Kazakhstan-Malaysia Chamber of Commerce and Industry (KMCCI) representing KAZMY.
KAZMY is the special purpose vehicle designated to launch the project in Kazakhstan, to fulfill the high demand for top quality building materials in the republic, using MycroSmelt TECHNOLOGY [].
The planned investment is estimated to cost RM178 million, and will be represented by an equal 50% participation by both MIE and KAZMY, in which 30% will be made directly by shareholders of the joint venture and 70% will be in the form of bank lending from Kazakh financial institutions.
Under the MoU signed on Thursday, MIE would be the lead technical development engineer and the project manager.
It will provide the necessary expertise, experience and resources to design and build the MycroSmelt plant.
The CONSTRUCTION [] is planned to start in second quarter of 2012, with its target completion date in 2013.
The projected annual capacity of the MycroSmelt plant is expected to be approximately 110,000 tonnes per year.
Melewar executive chairman Tunku Datuk Ya'acob Tunku Tan Sri Abdullah said the MycroSmelt technology provided tremendous cost savings in the production of integrated re-bar and other long product, as it uses high efficient induction furnaces.
"With energy efficiency of a large-scaled facility, the MycroSmelt Steel facility can be located close to urban areas and companies can enjoy savings from not having to transport scrap iron over long distances, and transporting the finished steel products back again.
"MycroSmelt technology enables to smelt and process scrap iron in small quantities, with comparable unit operating cost and capital expenditure of large scale facilities," he said.
The MoU between MIE and KAZMY was signed by Tunku Ya'acob and Temujin Nukenov, the managing director of the Kazakhstan-Malaysia Chamber of Commerce and Industry (KMCCI) representing KAZMY.
