According to media reports, Malaysian electro-galvanized (EG) steel sheet manufacturer Nippon EGalv Steel, a subsidiary of Japan-based major global steelmaker Nippon Steel Corp., will permanently shut down its operations in Penang on July 31 due to lower demand for its products and the company's inability to earn a profit.
Nippon Steel will supply the material produced at its ironworks in Chiba and Hyogo prefectures in Japan directly to its Malaysian customers.
The Nippon EGalv Steel plant, which was launched in 2008 and became a subsidiary of Nippon Steel in 2011, is able to produce up to 120.000 mt of rolled products for manufacturers of automobiles and household appliances and for the construction industry. The plant in Seberang Prai currently employs almost 160 employees.