Posted on 10 Apr 2014
Eastern Steel Sdn Bhd's RM1.8 billion integrated steel mill complex in Kemaman, Terengganu will be operational next year, two years behind its original scheduled opening of mid-2013.
Natural Resources and Environment Minister Datuk Seri G Palanivel said the complex, which will have an annual production capacity of up to five million tonnes of steel slabs, is currently under construction and is expected to be in operation next year.
He said the Detailed Environmental Impact Assessment (DEIA) for the project was received on Nov 4, 2009 and approved on Jan 27, 2010.
He said this in a parliamentary written reply dated March 17 to Kuala Terengganu Member of Parliament (MP) Datuk Raja Kamarul Bahrin Shah Raja Ahmad. Raja Kamarul had requested the ministry for disclosure of the operations for the soon-to-be-completed complex.
The DEIA report was approved by the government on conditions that need to be adhered to, added Palanivel. The ministry, however, did not disclose what those conditions are.
Eastern Steel, a joint venture company between Hiap Teck Venture Bhd and Shougang Group of China, had a total paid-up capital of RM200 million as at Aug 1, 2012.
The project is believed to be the largest Chinese foreign direct investment in Malaysia to date.
According to Eastern Steel's website, the complex, with a land size of 1,200 acres (485.62ha), would have an initial annual production capacity of 700,000 tonnes of steel slabs upon completion of Phase 1, Stage 1.
Upon the overall project completion, being Phase 1 and 2, the complex would have a total annual capacity of about three million tonnes of steel slabs.
It was reported that the steel plant is estimated to produce 1.5 million tonnes of steel slabs per year, though Eastern Steel has a licence to produce five million tonnes per year.
At a press conference at the Parliament lobby yesterday, Raja Kamarul said the location of the complex is not suitable since it is located near several tourist spots.
Kuantan MP Fuziah Salleh also appealed to the government to provide more details of the complex's operations and whether the firm had consulted with the locals in the area.
She pointed out that the DEIA report revealed that there are 33 settlements situated within 3km to 5km of the complex.
Hiap Teck owns a 55% stake in Eastern Steel, while Orient Steel Investment Pte Ltd and Chinaco Investment Pte Ltd own 40% and 5% respectively.
