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Thursday, June 28, 2012

Masteel to supply steel bars to Dutch firm

Malaysia Steel Works (KL) Bhd (Masteel) will supply 270,000 tonnes of steel bars and steel billets, worth RM500 million,
to Amsterdam-based Trafigura Pte Ltd.

Managing director Datuk Seri Tai Hean Leng said the three-year supply was expected to commence in the second half of the year.

"Masteel has been most fortunate to be selected as one of Trafigura's major suppliers of steel products for its Asia Pacific customers.

"With this agreement, we are able to comfortably utilise our upstream and downstream capacities that will come onstream in the next two years," he told reporters after the signing ceremony to facilitate the supply.

The agreement was inked by Tai and Managing Director of Trafigura, Dominic Watters, and was witnessed by Deputy International Trade and Industry Minister Datuk Jacob Dungau Sagan.

Trafigura is the world's second largest independent trader of bulk and non-ferrous minerals and has investments in industrial assets around the world.

The company established its regional hub in Singapore last year and to-date, has invested significantly in Malaysia, including in oil terminals and metal warehouses in Pasir Gudang, Johor and a metals warehouse in Port Klang.

Tai, who is also chief executive officer, said Masteel was continuously expanding its production capacity with its upstream production poised to grow by 50,000 tonnes to 600,000 tonnes next year.

"We are also investing about RM95 million to construct a new downstream factory, adjacent to our existing upstream meltshop facility, in Bukit Raja.

"The downstream business which produces steel bars will have its production capacity increased by another 200,000 tonnes and complement the existing output of 350,000 tonnes from our steel mill in Petaling Jaya.

"The construction of the plant is expected to start in the second half of the year and will take approximately 18 months to complete," Tai added.

In a related development, he confirmed that Masteel was in the midst of bidding for steel jobs under the Klang Valley MRT project, estimated to be worth between RM2 billion and RM3 billion.

If successful, the contract would keep the company busy for up to four years. -- BERNAMA

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