One of the major steel producers and exporters in Malaysia, Eastern Steel, is progressing in expanding significantly its production capacity by launching a second bigger blast furnace and entering the HRC market. In late February, Zhang Zhixiang, the chairman of the Chinese giant Jianlong Group, the main investor in Eastern Steel and in this project, visited the construction site in Kemaman, Terengganu, Malaysia, and was informed that the production at the new BF will start in the second half of the current year. Moreover, by the end of the year, the first production of HRC under this project is also expected to be carried out.
The total pig iron capacity of the two BFs of Eastern Steel is expected at 2.7 million mt per year, while its continuous casting slab facilities will be capable of producing 2.6 million mt. At the moment, the company is capable of producing 700,000 mt of slabs, operating one 670m³ BF.
After adding the second 1,380m³ blast furnace, the production of steel will increase drastically, and the mill will be able to diversify its product portfolio restarting HRC production in Malaysia, and it will be possible to produce over 2 million mt of HRC annually after the normalization of production and reaching full capacity utilization.
At the moment, Eastern Steel is exporting all the semis it produces to neighboring countries like Indonesia, Taiwan or Thailand, or to distant markets like Turkey or Europe. “Since Malaysian products are duty free in Turkey, imports of HRC could be interesting,” a source in Turkey commented.