Masteel signs billet export deal

Masteel signs billet export deal

Malaysia Steel Works Bhd (Masteel) announced that it signed a one-year contract to export steel billets worth MYR80 million ($21.2 million) to downstream steel mills in Vietnam and the Philippines. Masteel signed the agreement with the Malaysian branch of Daewoo International, the special trade and overseas investment company of South Korea's multinational Daewoo Corporation. The new contract is expected to increase export sales of Masteel and to help the company reach its profit target for this year. Through the contract, the company's export share in the total sales is expected to increase from 30 percent to 40 percent this year. Prior to signing the agreement with Daewoo International, Masteel worked with another Malaysian dealer to export steel billets worth MYR 50 million to member countries of the Association of Southeast Asian Nations (Asean) during the first eight months of 2005. The contract with Daewoo will be effective as of October and is expected to add MRY 20 million to Masteel's 2005 revenue.