Maegma Steel HRC Sdn Bhd, a subsidiary of Kuala Lumpur-headquartered Melewar Industrial Group (MIG), is in the final stages of setting up an integrated steel mill in Lumut, Malaysia, after the signing of a gas sales agreement with Malaysian state-owned gas company Petronas on Monday, June 25, according to Malaysian national news agency Bernama.
According to news report, Maegma Steel HRC Sdn Bhd CEO Uwe Ahrens said that the company is ready to start the project after having obtained all relevant government approvals and licenses, and has carried out all studies from marine, geotechnical to detailed environment impact assessment and basic design.
The construction of the plant is planned to be started by July next year and is expected to be commissioned by June 2015. The project, with an initial investment of MYR 4.5 billion ($1.407 billion), is designed to produce three million mt of hot rolled coil (HRC) per year in its first phase, when the output will be supplied to meet domestic demand, while in the second phase of the project 20 percent of production is expected to be exported to Europe and Southeast Asian countries.