Source: New Straits Times Online
Hiap Tech Venture Bhd believes steel industry is heading towards an upswing in the near term mainly due to favorable ringgit and more stable steel prices.
As a result, the company expects to turn into profitability in the financial year 2018 like the rest of the industry players.
"The market now seems favourable. As you can see, steel players are making profit.
"What China has been doing in cutting down capacity bodes well for the industry as it stabilises the (steel) prices," said executive director Foo Kok Siew.
On ringgit, Foo said the currency is strengthening and currently positive for the steel industry as it cuts down foreign exchange loss.
Hiap Teck registered a net loss of RM102.98 million in the last financial year ended July 2017 but turned profitable in the first quarter of financial year 2017 with a net profit of RM16.04 million.
Foo believes the company will remain profitable this year, supported by its 55 per cent-owned Eastern Steel which will start its operation next year.
"We are going to be profitable this financial year based on the current environment. We are in advanced stage of planning to resume production of Eastern Steel after taking into account the market conditions," he said.