Malaysia Chuan Huat To Supply MYR200 Mln Worth Of Materials To Akisama’s Project

© Nikkei Markets

KUALA LUMPUR (Dec 19) — Malaysian steel company Chuan Huat Resources inked a pact with property developer Akisama Group on Wednesday to supply up to 200 million ringgit ($47.7 million) worth of building materials for a mixed development project in Kuala Lumpur.

Chuan Huat will be the principal supplier to the 12 blocks of 48-storied condominium project, its Chief Executive and Group Managing Director Patrick Lim said in a news conference.

The mixed development project known as RC Residences consists of 5,784 units of condominiums and 121 units of shop offices and has a gross development value of over 2.5 billion ringgit. It is scheduled to be completed in four phases over four years. 

– By Gan Pei Ling
– Edited By Abhrajit Gangopadhyay

Malaysia Hiap Teck Joint Venture To Be Profitable If Current Steel Price Holds-Official

© Nikkei Markets

KUALA LUMPUR (Dec 17) — Malaysian steelmaker Hiap Teck Ventures expects its joint venture company Eastern Steel to be profitable if the price of steel slabs remains at the current level of $450/ton, its group executive director said Monday.

“We are operating at our full capacity of 700,000 tons per annum and have incurred positive cash flow,” Foo Kok Siew told reporters after its annual shareholders’ meeting in Selangor.

Hiap Teck Ventures was in the red from 2015 to 2017 after operations at the Eastern Steel were stalled. “Our downstream operations (trading and manufacturing) have always been profitable,” Foo added.

Eastern Steel’s furnace in Kemaman, Terengganu ceased production after steel slabs price dropped to $250/ton in 2015, thanks to the influx of cheap imports from China. It resumed production in July this year after the Chinese production capacities fell.

Foo said 60% of Eastern Steel’s production is exported to the neighboring countries mostly to the Philippines, Indonesia, Thailand and Taiwan.

– By Gan Pei Ling
– Edited by Sayantika Bhowal