Posted on 08 Jul 2025
The investment by Esteel Sabah Sdn Bhd in the state is proceeding as planned, with support from the State Ministry of Industrial Development and Entrepreneurship (MIDE), said Minister Datuk Phoong Jin Zhe.
Phoong said the company’s ongoing expansion efforts and increased investment volume reflect strong confidence in Sabah’s economic prospects. This confidence was further demonstrated with the signing of the Land Lease Agreement for Phases 2 and 3 at the Sipitang Oil and Gas Industrial Park (SOGIP) on December 31, 2024.
As part of its commitment, Esteel made an initial RM35 million deposit to ensure smooth project implementation. Following the issuance of the Foreign Manufacturing License (FML) in late January 2025, Esteel has undertaken proactive and systematic follow-up actions to maintain momentum.
In February, Esteel signed a Natural Gas Supply Agreement with Sabah Energy Corporation (SEC) and Petronas, securing a reliable and sufficient energy supply to support operations at its upcoming green steel plant.
The company completed the redesign process to match its expanded operational scale and, in March and April 2025, conducted a transparent and competitive bidding process for the construction of a private jetty.
This culminated in the signing of the Phase 1 Jetty Construction Contract with China Communications Construction Company (CCCC) on May 30, 2025 — the same day as the official launch of Esteel’s Phase 1 Investment Project, officiated by the Prime Minister.
Several other key milestones have also been achieved, including:
Approval of the Development Plan for the green steel plant by the Sipitang District Council;
Review and clearance of the Environmental Impact Assessment (EIA) by the Environmental Protection Department (EPD), confirming compliance with environmental regulations;
Approval of the Earthwork Plan by the Sipitang District Council, allowing physical work to proceed;
Signing of EIA conditions by Esteel as a formal commitment to environmental sustainability throughout the project.
To expedite construction, Esteel has finalized a contract for site clearing and preparation, with physical work now in full swing.
“The company is confident that by July and August this year, visible transformation will take place on-site — a reflection of the project’s tangible progress and Esteel’s ongoing commitment to developing a world-class integrated green steel industry in Sabah,” said Phoong.
He added that the development not only brings significant foreign direct investment into Sabah, but also opens up highly skilled job opportunities for locals, strengthens local companies, and stimulates growth in the downstream sector and industrial support ecosystem.
“This aligns with the state government’s vision to position Sabah as a high-tech industrial hub in the region. My ministry remains committed to facilitating and coordinating the investment to ensure factory operations begin as soon as possible, further boosting the manufacturing sector and job creation in Sabah,” he said.
Phoong was responding to Kapayan assemblywoman Datuk Jannie Lasimbang during the State Assembly sitting today, who had inquired about the latest status of Esteel Sabah’s investment and the overall investment climate in Sabah up to the first quarter of 2025.
Source:Borneo Post
