Lion Group to invest in steel capacity expansion

Lion Group to invest in steel capacity expansion

Malaysia's largest steelmaker Lion Group is planning to invest Ringgit 5.48 billion ($1.45 billion) in the next five years in order to increase its steel production capacity. The company is, reportedly, planning to build a new direct reduced iron plant for Ringgit 1 billion ($264.6 million), and a plate mill. The company is also planning to build an 600 MW power plant for the new production lines with Ringgit 1.6 billion ($423.26 million) investment.. Other major projects include a Ringgit 1.2 billion worth blast furnace, coke oven and sintering plant and a Ringgit 640 million ($169.3 million) worth plate rolling mill. The plant is expected to begin operations in 2006. DRI production will help company to reduce dependence on scrap as raw materials for steelmaking and enable the production of high grade steel.