Posted on 21 Nov 2022
Alliance Steel, a joint venture between Guangxi Beibu Gulf Port International Group and Guangxi Shenglong Metallurgical, says it will not slow down the second phase of its expansion plan in Malaysia, despite global economic headwinds.
The firm plans to invest $1.8 billion in the second phase of the expansion plan at its steel plant located in Kuantan, the capital of the Malaysian state of Pahang. Upon completion, the company's capacity will be increased to 10 million tonnes/year from 3.5m t/y currently.
However, the firm has not given a timeline for the expansion plan.
"We are in the midst of acquiring land. This process is currently paused due to the general election in Malaysia," says Steve Hu, chief technology officer of Alliance Steel (M) Sdn Bhd.
The company earlier invested $1.6 billion in phase one to build plant on 710 acres of land. In the second phase, the company plans to acquire 750 acres of new land, but it has so far acquired only 550 acres.
"We won't slow down our expansion plan. We still have a positive view on the steel market and we believe that after this Covid, the market sentiment will improve," Hu says.
The company, which mainly produces high-speed wire rods, bars and H-beams, plans to expand its product range to high-end steel plate products.
"We want to expand our product range and make our products more competitive," Hu says.
Hu also says, 70% of its products will be exported to other countries while 30% is for domestic market.
He notes that the group currently has two blast furnaces and the capacity utilization is more than 100%.
Source:Kallanish
