Malaysia’s Hiap Teck will resume its slab operations by end-July, it has confirmed to Kallanish. All preparations have been made for the go-ahead, a source close to the company says.
Commercial operation for the slab plant is expected in the last quarter of this year. The company plans to sell the slab domestically as well as exporting within the region.
In April this year, China’s Shanxi Jianlong took up the majority 60% share in Eastern Steel (see Kallanish 4 April). One of the conditions of the deal is that Jianlong will provide a free loan to Hiap Teck equal to the value of the shares. This will enable the Malaysian company to have the necessary funding to restart its 700,000 tonnes/year blast furnace and slab caster at Eastern Steel.
The deal also includes a provision for Eastern Steel to raise another MYR 300 million ($75m) from its existing shareholders. The plant could also add a billet caster, Hiap Teck said in its Bursa Malaysia notice in April.