Friday, February 18, 2011

Mycron ... Feb11

Mycron Steel Bhd, a cold rolled coiled (CRC) steel sheet maker, plans to spend up to RM200 million to double its production capacity to 500,000 tonnes a year from 260,000 tonnes now as part of its strategy to tap into the import-substitution market, says its CEO.

Mycron Steel, a Melewar group subsidiary, plans to build the new mill on the five acres of land beside its existing factory and is now talking to six companies on a bid to supply the machinery for the new CRC mill.

Malaysia is a substantial importer of CRC, with 2009 showing CRC-related product imports amounting to 1.43 million tonnes compared with 1.62 million tonnes a year earlier. With such a large amount of imported CRC, the opportunity for Mycron to tap into the import-substitution market is huge, he said.

They are in deep discussion with Perusahaan Otomobil Kedua Sdn Bhd (Perodua) to supply CRC. Should all go well, it will be supplying CRC to Perodua for the Myvi replacement model, scheduled to be launched in 2011.
Perodua’s CRC is mainly imported. Mycron currently supplies up to 12,000 tonnes of CRC annually to Proton Holdings Bhd.

Apart from the automotive sector, Mycron also supplies CRC to the steel-galvanising and colour-coating sector, in particular to BluScope Steel (M) Sdn Bhd.

Mycron is trying to tap into the import-substitution market, betting that domestic CRC users will begin to seek more local CRC rather than import from abroad.

Under the government’s current iron and steel policy, announced on June 17, 2009, import duties on flat steel products, including CRC, have been reduced to 25% from 50%. The policy also no longer grants import-duty exemption for flat products that can be supplied by local makers such as Mycron, except to companies operating in free trade zones and licensed manufacturing warehouses.

In order to avoid paying the 25% import duty, CRC users have to buy from local manufacturers. Still, not all CRC users have turned to local sources as evidenced by the substantial amount of CRC still being imported into the country. The reason for this is because the quality of local CRC in general does not match preferred standards.

Mycron’s new mill is expected to enhance its product quality besides expanding production capacity in order to capture a bigger slice of the import-substitution market.

For 1QFY11 ended Sept 30, 2010, Mycron’s revenue totalled RM105.98 million, up 24.7% from the previous corresponding period while net profit totalled RM4.23 million, a reversal of the net loss of RM2.86 million previously.

Unlike most steel players, Mycron’s net gearing is considered relatively modest at 64.6%. As a result, it also pays good dividends, with a dividend yield of about 5.38% based on its prevailing share price.

As at Sept 30, 2010, the company had RM50.3 million in long-term borrowings, RM132.19 million in short-term borrowings and RM12.05 million in cash. That translates into a net debt of RM170.44 million against shareholders’ equity of RM263.65 million.

46 comments:

Anonymous said...

buying xanax online no prescription xanax effects elderly - buy alprazolam from mexico

Anonymous said...

buy xanax bars many 1mg xanax get high - xanax 2mg sr

Anonymous said...

tramadol generic tramadol 50mg tablets used - order tramadol online

Anonymous said...

buy tramadol online purchase cheap tramadol online - aspirin vs tramadol for dogs

Anonymous said...

buy carisoprodol carisoprodol (soma) buy - carisoprodol tolerance

Anonymous said...

cheap tramadol online is tramadol hcl make you high - tramadol 150mg

Anonymous said...

buy generic tramadol buy tramadol for dogs usa - suboxone for tramadol addiction

Anonymous said...

buy tramadol online buy-tramadol-overnight - tramadol hcl 50 mg canine

Anonymous said...

generic xanax buy xanax online with no prescription needed - buy xanax online from europe

Anonymous said...

buy carisoprodol carisoprodol recommended dosage - carisoprodol usa

Anonymous said...

xanax online xanax online cheap - xanax dosage one time

Anonymous said...

generic xanax get generic xanax uss - do xanax side effects go away

Anonymous said...

order xanax no prescription xanax online no prescription cheap - what is xanax good for

Anonymous said...

buy tramadol online tramadol not working - tramadol withdrawal buprenorphine

Anonymous said...

cialis online buy cialis us suppliers - cialis online mastercard

Anonymous said...

how to buy cialis online cialis online generic - safest place buy cialis online

Anonymous said...

alprazolam drug buy xanax online canada no prescription - xanax dosage use

Anonymous said...

cialis online cialis golf tips - cheap cialis usa

Anonymous said...

buy tramadol life after tramadol addiction - order tramadol online usa

Anonymous said...

http://buytramadolonlinecool.com/#63102 tramadol ultram hcl - buy tramadol online 100mg

Anonymous said...

buy tramadol cheap tramadol eu - tramadol get u high

Anonymous said...

order tramadol buy tramadol overnight delivery no prescription - tramadol for dogs with arthritis

Anonymous said...

http://landvoicelearning.com/#51438 buy tramadol online echeck - generic form of tramadol

Anonymous said...

http://landvoicelearning.com/#44827 tramadol an 627 - tramadol online cod payment

Anonymous said...

http://blog.dawn.com/dblog/buy/#34852 tramadol 37.5 - tramadol 50 mg sleep

Anonymous said...

cheap tramadol no prescription tramadol no prescription overnight cod delivery - generic for tramadol medication

Anonymous said...

http://landvoicelearning.com/#44827 tramadol overdose usa - buy generic tramadol no prescription

Anonymous said...

http://buytramadolonlinecool.com/#30807 does tramadol hcl 50 mg contain acetaminophen - can you buy tramadol otc

Anonymous said...

http://landvoicelearning.com/#57594 tramadol dosage bluelight - tramadol 50 mg extended release

Anonymous said...

http://buytramadolonlinecool.com/#73892 online pharmacy tramadol cheap - what is a normal dosage of tramadol for dogs

Anonymous said...

buy tramadol tramadol hcl 200mg er - tramadol online no prescription overnight cod

Anonymous said...

buy tramadol tramadol with suboxone - is it legal to order tramadol over the internet

Anonymous said...

http://reidmoody.com/#96318 ativan vs xanax half life - ativan addiction treatment centers

Anonymous said...

ways to buy ativan online generic for ativan lorazepam - ativan withdrawal and heart palpitations

Anonymous said...

buy ativan online ativan buzz - 1mg lorazepam vs 1mg xanax

Anonymous said...

xanax generic order xanax paypal - long will xanax high last

Anonymous said...

buy tramadol cod online tramadol hcl 50mg for dogs - using suboxone tramadol withdrawal

Anonymous said...

buy tramadol online tramadol hcl 50 mg overdose - tramadol for dogs dosage usa

Anonymous said...

tramadol 100 mg ultram side effects weight loss - tramadol hcl pills

Anonymous said...

buy tramadol cod tramadol hcl classification - tramadol 50mg vs lortab

Anonymous said...

http://ranchodelastortugas.com/#58720 xanax - xanax 250 dosage

Anonymous said...

buy tramadol overnight cod buy tramadol usa - buy tramadol ultram ultracet online

Anonymous said...

http://ranchodelastortugas.com/#37284 buy xanax online legally - what is xanax 2mg for

Anonymous said...

buy xanax online xanax bars 93 1003 - drug interactions dramamine xanax

Anonymous said...

buy xanax online xanax 93 832 - generic xanax not working

Anonymous said...

buy xanax online forum xanax bars no imprint - xanax bars green