Posted on 17 Apr 2023
Malaysia’s Eastern Steel has recently announced the official start of construction of a new 1,450mm hot rolled strip mill in Kemaman, Terengganu, according to an announcement of its parent company Jianlong Group in China. China MCC22 Group is responsible for the construction.
The new mill has a design capacity of 3.5 million tonnes/year, and reportedly could produce up to 4m t/y, Kallanish notes. The main products include structural steel, weathering steel, patterned steel strip, boiler and pressure vessel steel, pipeline steel, high-strength steel for automobile structure, marine steel, etc.
As an important part of the company's second-phase project, Jianlong believes that it is of great significance in extending the industrial chain, upgrading the value chain and improving the market competitiveness of Eastern Steel.
A company source informed Kallanish that Phase II of Eastern Steel will be completed and start operation in September or October, boosting its crude steel capacity by 2mt to 2.7m t/y. This implies the current capacity at 0.7m t/y, but the source said the production can reach 0.8m t/y.
In the long term, Eastern Steel intends to reach 5m t/y of crude steel capacity by 2027, four years later than the goal set in 2018.
Source:Kallanish
