Malaysia's Eastern Steel to start HRC production by CY'23, hike capacity

Malaysia-based Eastern Steel recently announced it is planning to start production of hot-rolled coils (HRCs) by CY'23. The steel major is further aiming to increase its annual steel making capacity to 2.7 million tonnes (mn t), as per a latest SteelDaily report.

The project comprises installation of a hot-rolled steel strip mill of an annual capacity of 2 mn t and a second blast furnace of approximately 1,380 cubic metres. The steel producer will invest RM 3 billion ($712 million) in this project.

The company expects construction to start in CY'22 and production operations will commence in the third quarter of CY'23.

Currently, the company's Kemaman plant has an annual production capacity of 700,000 tonnes (t) of semi-finished products with 110% utilisation rate. About 70% of the total production is exported, out of which 30% solely goes to China and the balance 40% is shipped to Indonesia, Thailand and Taiwan.