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09 Feb 2010

1. INTRODUCTION

The Board of Directors of Malaysia Steel Works (KL) Bhd (“Masteel” or the “Company”) wishes to inform that the Company intends to invest approximately RM300.0 million in a downstream expansion project to meet the demand of the growing local and export markets (“PROJECT”). 

The PROJECT will be ready in two (2) years and the whole PROJECT will be financed through internal generated funds and bank borrowings.

Announcement Details :

2. DETAILED INFORMATION OF THE PROJECT

      The PROJECT will be located adjacent to the Company’s existing meltshop at the Bukit Raja plant, Klang, covering an area of approximately 20 acres land. The feedstock will be the Company’s billets produced at the meltshop.


3. RATIONALE
      To meet the demand of the Company’s growing local and export markets, catering a wider range of steel products of wider market segments.


4. EFFECTS OF THE PROJECT

There is no immediate effect. However, once the PROJECT completed in 2 years time, it will augur well to the margin and profitability of the Company. Consequently, this should improve the stakeholders’ value and expectation.


5. DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTEREST
      None of the directors and/or major shareholders of Masteel and/or persons connected to them have any interest, direct or indirect, in the PROJECT.


6. STATEMENT BY THE BOARD OF DIRECTORS
      The Board of Directors of Masteel is of the opinion that the PROJECT is in the best interest of Masteel.


This announcement is dated 9 February 2010.
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