Malaysia-based steel producer Malaysia Steel Works (KL) Bhd (Masteel) has reached a three-year offtake agreement with Amsterdam-based commodities company Trafigura, as announced by Trafigura.
Under the agreement worth RM 500 million ($157.2 million), Masteel will supply steel billets and bars to Trafigura, which will use the steel for its clients in the Asia-Pacific region. Masteel is expected to start deliveries in the second half of the current year.
The agreement is expected to increase Masteel's production output by 50,000 mt to 600,000 mt in 2012. Masteel currently has an annual crude steel capacity of 550,000 mt at Bukit Raja and an annual rolling capacity of 350,000 mt at Petaling Jaya.