Posted on 23 Sep 2024
Steel manufacturer Mycron Steel Bhd is planning to develop and launch its own patented green steel products by 2025, as it looks to address the growing demand for sustainable materials.
Its chief executive officer Roshan M Abdullah said the new green steel brand will focus on high-quality, low-carbon products designed for various high-end applications where end-users are willing to pay a premium price and invest in reducing their greenhouse gas emissions.
These applications include for the automotive industry, construction and infrastructure, as well as consumer goods and appliances.
"We are committed to delivering products that not only meet international standards but also contribute to our stakeholders' sustainability objectives," Roshan said during his speech at an event on Friday.
One of the significant steps that Mycron Steel has undertaken was signing a memorandum of understanding (MOU) with Universiti Teknologi Malaysia (UTM) in July to develop a comprehensive sustainability monitoring system, Roshan said.
The sustainability monitoring system, he said, is an essential step towards developing its own environmentally-friendly steel production process.
Earlier on Friday, Mycron Steel signed an MOU with Japanese steel manufacturer JFE Steel Corp, as it aspires to become the first green steel manufacturer in Malaysia.
Under the MOU, Mycron Steel will integrate JFE Steel's JGreeX green steel into its production process. JGreeX employs a mass-balance approach to reduce carbon dioxide (CO2) emissions across the entire steel production chain, allocating the emission reductions to specific products.
One such product is the hot-rolled steel sheet, a core raw material for Mycron Steel. According to the group, the mass-balance method adheres to the Japan Iron and Steel Federation’s guidelines, ensuring that the environmental benefits are precisely calculated and verified by the independent organisation ClassNK.
"By integrating JGreeX into our value chain, Mycron Steel is paving the way for green steel production, supporting key national initiatives such as the 12th Malaysia Plan and the New Industrial Master Plan (NIMP) 2030, which emphasise sustainability and innovation as drivers of economic growth," Roshan said.
While acknowledging that the incorporation of JGreeX will only form a small percentage of Mycron Steel's overall steel production in the short term, Roshan said that the demand for green steel is expected to grow by 2.5 times over the next five years.
"By 2030, it (green steel) could even be up to 25% of the total volume of steel sold globally," he told a press conference after the signing ceremony.
"With regards to Mycron Steel, we have to make sure that all of our customers understand the needs, the challenges and the opportunities that come with embracing green steel. And to ensure that we are able to cater for our customers' needs going forward in the future," Roshan added.
Shares of Mycron Steel closed unchanged at 39.5 sen, valuing the steel manufacturer at RM129.19 million. The counter is up 8% this year.
Source:The Edge
