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Maegma hrc project to reduce malaysian reliance on - Steel Sheet Coil - China ERW Steel Tube by dedwf wefweg

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Maegma hrc project to reduce malaysian reliance on - Steel Sheet Coil - China ERW Steel Tube by
Article Posted: 04/23/2013
Article Views: 718
Articles Written: 1942
Word Count: 414
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Maegma hrc project to reduce malaysian reliance on - Steel Sheet Coil - China ERW Steel Tube

Business,Business News,Business Opportunities
It is reported that Maegma Steel HRC Sdn Bhd's proposed MYR 4.5billion hot roll coil steel project in Tanjung Hantu near Lumut,aims to cater to the growing domestic demand and to help reduceMalaysia's dependence on steel imports. The facility will source its iron ore requirements from Vale SA'siron ore distribution centre in Lumut while Petroliam Nasional Bhdwill supply the natural gas. Mr Uwe Ahrens CEO of Maegma said that "Steel and hot roll coil inparticular, is an essential part of any country's economy andMaegma's first phase capacity of three million tonnes per year willreduce Malaysia's dependence on imports to the value of more thanMYR 6 billion per year alone." Mr Ahrens said the Maegma fully integrated facility project willrequire about 60 million metric British thermal units of naturalgas per day. Maegma has obtained all relevant licenses, permits andapprovals, detailed engineering terms, drawings from equipmentsuppliers and contractors and is ready to commence Phase 1 (a & b)of the project to produce three million tonnes of HRC annually by2017.

Maegma intends to increase capacity to produce up to 10 milliontonnes of HRC by the end of Phase 3 of its proposed development in2027 with the financing then provided by the project's cash flowand gearing capacity projected to be strong enough to fund theexpansion. Malaysia consumed 1.7 million tonnes of HRC and 1.3 million tonnescold rolled coil in 2009 and of this amount imports amounted to 0.8million tonnes of HRC and 0.8 million tonnes of CRC, bringing thetotal import of flat steel sheets for the year to 1.6 milliontonnes. Maegma expects to commence operations of phase 1a in 2015 at aproduction capacity of 1.5 million tonnes a year by which timeMalaysia is expected to be importing 1.7 million tonnes of HRC and1.3 million tonnes of CRC. According to Maegma's current plan, total production capacity isscheduled to rise to three million tonnes by 2017 and then 6.5million tonnes by 2022 under Phase 2 of the development plan.

Totalproduction capacity is expected to hit 10 million tonnes a yearcirca 2027. Source - The Malaysian Reserve.
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