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Misif and MSA Oppose Wenan Steel Project in Sarawak

Steel News - Published on Thu, 06 Feb 2020

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The Malaysian Iron & Steel Industry Federation and the Malaysia Steel Association is opposing the proposed new investment from the Wenan Steel Project at Samalaju Industrial Park within the Sarawak Corridor of Renewable Energy. The associations said if allowed to materialise the local steel industry expects the proposed project with 10 million tonnes per annum will further exacerbate the overcapacity in the country. It said “The presence of this mill has caused nearly half a billion ringgit in losses for the four key domestic long products steel mills in the last four quarters which otherwise would have been profit-making and contributed significantly to the government’s tax coffers.”

Both Misif and MSA said that while they welcome foreign direct investment and domestic direct investment in steel grades and products which are not manufactured locally, manufacturing licenses for like products produced by existing local steel mills should not be approved.

The associations also pointed out that Malaysia’s total steel consumption in 2018 was 9.77 million tonnes but the total installed capacity was 24.64 million tonnes, with 12.64 million tonnes and 12 million tonnes for long and flat products respectively. In terms of utilisation, national long products’ capacity utilisation deteriorated to about 28% in 2018, from nearly 46% in 2014 due to the emergence of another China-owned mill in the east coast of West Malaysia.

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Posted By : Rabi Wangkhem on Thu, 06 Feb 2020
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