- Move to boost annual production capacity to 6.3 mnt
- Hot-rolling mill of 3.5 mnt capacity launched last year
Japan Metal Daily: Eastern Steel, a Malaysian blast furnace manufacturer majorly owned by China’s Jianlong Steel Group, has commenced construction on its third blast furnace at its plant in Kemaman, Terengganu. The new blast furnace will solidify Eastern Steel’s position in the ASEAN steel market, which has seen rising competition and increasing steel demand.
Background
Eastern Steel has a plant in Kemaman, Terengganu, on the east coast of the Malay Peninsula. The addition of another blast furnace is expected to increase the company’s annual production capacity to 6.3 million tonnes (mnt) from 3.6 mnt.
Earlier, Eastern Steel boosted its output capacity to 2.7 mnt with a second blast furnace two years ago. The company used to export semi-finished products and slabs, but at the end of last year, it launched a hot-rolling mill with an annual production capacity of 3.5 mnt and has started producing hot-rolled coils.
Market focus
Eastern Steel’s products are primarily export-oriented due to limited domestic demand in Malaysia. The company plans to sell both slabs and HRCs upon completion of the new blast furnace. Given lower upstream costs, the company also plans to continue slab exports.
Outlook
The current hot-rolling mill is reportedly capable of being expanded to 4 mnt and is expected to intensify competition in the ASEAN region, particularly in Indonesia, where multiple hot-rolling mills are planned.
Note: This article has been written in accordance with a content exchange agreement between Japan Metal Daily and BigMint.
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