BEIJING, July 22 (Bernama) -- Malaysia''s leading steel company, Hiap Teck
Venture Berhad (HTVB), Friday signed a joint-venture agreement here with China
Shougang International Trade and Engineering Corporation to set up an integrated
steel mill in Teluk Kalung, Kemaman, Terengganu.
Malaysian embassy''s minister counsellor and deputy chief of mission Lim Juay
Jin and China''s ambassador to Malaysia Chai Xi were invited to witness the
The first phase of the project involves an investment of 1.6 billion Yuan,
with an annual production capacity of 700,000 tonnes which will be increased to
1.5 million tonnes subsequently, according to HTVB chairman Tan Sri Alwi Jantan.
The plant project is expected to be completed by 2013.
"The timing is perfect as the cooperation immediately follows the exchange
of visits between the Malaysian prime minister and Chinese premier," said Alwi
at the ceremony.
HIAP TECK-MILL 2 (LAST) BEIJING
Alwi hoped it would encourage more inflow of foreign direct investment (FDI)
into Malaysia as well as domestic investment into the steel downstream industry,
following the setting up of the integrated steel mill in Terengganu.
He said the project would also boost the development of the steel industry
in Terengganu and would have the potential to develop the state into a regional
Under the contract, HTVB’s 55 per cent-owned subsidiary, Eastern Steel, will
develop, engineer, construct, control, finance, own and operate the plant, while
Shougang International will construct the plant.
Established in 1987, with six factories and warehouses occupying 65 acres of
land, HTVB is the first and only manufacturer in Malaysia that can produce
hollow sections with 18-inch diameter and up to 16mm-wall thickness using the
latest ERW technology.
Shougang International which was established in 1992, represents its parent
company, Shougang Group, to conduct overseas investment including import and
export business, contracting overseas projects, international economic and
technological cooperation, real estate development, hotel and apartment
management, logistics, estate management and domestic trade.
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