Mycron Steel Bhd has announced the signing of an agreement for the supply of cold rolled coil feedstock to galvanized steel roofing and paneling specialist, BluScope Steel Malaysia Sdn Bhd - a move which the company says will help it to boost its capacity utilization rate up to 100 percent.
The deal worth up to MYR 100 million (approx. $29 million) annually and signed through Mycron's wholly-owned subsidiary, Mycron Steel CRC Sdn Bhd, foresees an annual supply of 60,000 tons of cold rolled coil.
Commenting on the deal, Mycron Steel Bhd chief executive officer Azlan Abdullah said that Myrcon was using 80 percent of its total capacity at present, up from only 65.7 percent in 2006. He added that with the new deal this figure was expected to reach 100 percent.
Within the scope of the deal, Mycron will purchase high quality hot rolled coil steel from BlueScope Steel's Australian steelworks in Port Kembla, New South Wales, to be processed into cold rolled coil for BlueScope Steel Malaysia.
BlueScope Steel (M) is a joint venture that is 60 percent-owned by Australia-based BlueScope Steel Ltd and 40 percent-owned by PNB Equity Resources Corporation Sdn Bhd, a wholly-owned subsidiary of Permodalan Nasional Bhd.