Beijing-based Chinese steel giant Shougang Group plans to build a new steel plant with a Malaysian partner in Malaysia, according to a joint statement issued by the two companies.
Investment in the new steel production facility is expected to total around US$570 million. This will be the largest overseas capital investment to date in Malaysia. Shougang and Malaysia's Hiap Teck Venture Berhad have formed Eastern Steel to build the mill in the eastern Malaysian state of Terengganu. The planned annual steel output capacity of the overall project will be in the range of 3-3.5 million mt.
"We see tremendous potential in the steel mill industry in Malaysia, and we are very excited as this is Shougang's first steel mill investment outside of China," Shougang chairman Zhu Jimin was quoted as saying in the joint statement.