Posted on 06 Dec 2011
Hiap Teck's RM1.8 billion integrated steel complex in Kemaman, Terengganu is forecasted to contribute 50% of group profits in 2014.
"That is with one blast furnace capable of producing 700,000 tonnes of steel slabs per year in phase one," Hiap Teck executive director Low Choong Sing said on the sidelines of the groundbreaking ceremony for the complex.
He estimated the complex could contribute as much as 75% to 80% of group profits with another furnace in the second phase, which means the complex would have a capacity of 1.5 million tonnes of steel slabs per year.
The investment cost for phase one is RM754 million and is due to be completed by mid-2013.
Low said phase two is expected to involve a further investment of RM1.05 billion, and would be scheduled for completion in 10 months after phase one becomes operational.
The complex will be developed by Eastern Steel Sdn Bhd in which Hiap Teck Ventures has a 55% stake, China Shougang Group has 40% and Chinaco Investment Pte Ltd has 5%.
China Shougang, through its unit Shougang Singapore, is taking up a private placement of 32.2 million new shares (a 9.84% stake) in Hiap Teck.
