Wai Cheong says the capital injection by Shanxi Jianlong was very timely as ESSB had gained a strong foothold in the local steel industry and was ready to embark on a RM3 billion expansion, involving a venture into the hot rolled coil (HRC) business.
KUALA LUMPUR (Nov 13): After a 10-year wait, Main Market-listed Hiap Teck Venture Bhd, controlled by tycoon Tan Sri David Law Tien Seng, is finally reaping the fruits of its investment in Eastern Steel Sdn Bhd (ESSB), which operates a fully-integrated blast furnace steel plant in Kemaman, Terengganu.
The construction of ESSB’s Kemaman plant started in 2011 before its dry run in 2014, followed by the commencement of production in January 2015.
Unfortunately, in October 2015, ESSB’s operations were suspended to minimise losses due to difficult market conditions at the time, caused by the influx of cheap imports from China that started in 2013.