The Memorium of Understanding, signed by the Sarawak state government, China Metallurgical Group Corporation and Xinwuan Group on 27 August, will be the largest ever foreign direct investment in Sarawak.

Preliminary feasibility studies will be carried out for a plant with a provisional steelmaking capacity of 5 million tonnes, coking coal capacity of 2 million tonnes, cold rolled coil capacity of 1 million tonnes and welded pipe capacity of 1 million tonnes per year. The land area set aside for the plant reportedly has a natural port, and may therefore enjoy lower transportation and logistics costs.

Malaysia’s Minister for industrial and entrepreneur development, trade and investment, Datuk Amar Awang Tengah Ali Hasan, said that the state government will emphasise the protection of the environment.

In addition to supplying Southeast Asia, the plant could also supply East Africa, the Middle East and South Asia.

APMEN News, Oct 2016