Steel Division Restarts HRC Operation

Our Steel Division will be restarting its Flat Products Steel Project to produce Hot Rolled Coil (HRC) in the 2nd quarter of 2021 with a production capacity of 2.5 million to 3 million tonnes a year.

The Division also plans to invest in a Blast Furnace (BF) Project with the first phase involving an investment of RM3 billion comprising a 3,000 cubic metres Blast Furnace, Sinter Plant, Coke Oven and 2 Converters, to be integrated with our existing 3 Arc Furnaces, Ladle Furnace and Caster. Our production capacity from these projects will be 5.5 million tonnes per annum of which 4.5 million tonnes will be to produce HRC and 1 million tonnes will be for the manufacture of high grade polished shaft bars and wire rods.

This production capacity of 5.5 million tonnes of steel products from the BF and 3 Arc Furnaces will enable us to replace imports worth RM13 billion a year through import substitution. This new investment will create 7,000 new job opportunities with 95% being local engineers and technicians, and the remaining 5% being foreign experts needed to provide training and technology transfer.

With the existing capacity of 1.2 million tonnes of steel bars and wire rods by Amsteel Mills Sdn Bhd, our total steel output will then be 6.7 million tonnes per annum.