It expects the construction boom in the Middle East to cushion the impact of lower domestic and regional demand for its steel products caused by the current sluggish economic environment.
For the first half of the year, overseas sales contributed 40% to Kinsteel’s total revenue. Of the figure, half was from the Middle Eastern market. Kinsteel exports its semi finished product namely billets, beam-blanks and blooms which are mainly used in the construction industry to the Middle East.
Going forward …
Its strategy is to focus on improving the utilisation rate of its products and stepping up marketing efforts overseas.
Venturing into the overseas markets is part of its long term plan to market its full range of products in the global market. The immediate targeted markets were the Middle East and Europe.
Following the completion of the acquisition of a 51% stake each in debt-laden Perwaja Steel Sdn Bhd and its Gurun assets in 2006, Kinsteel was transformed into one of the top five steel players in Malaysia with an integrated steel player status given its upstream, midstream and downstream activities.
Kinsteel is also the country’s sole producer of direct reduced iron (DRI) and heavy sections such as beam-blanks and blooms, U-channel bars, H-beams and I-beams. Currently Kinsteel had a total production capacity of 4.8 million tonnes, covering the diversified product range from upstream plants in Kemaman, midstream and downstream plants in Gebeng, Kuantan and Gurun, Kedah. Perwaja Steel produces 1.5 million tonnes of DRI and 1.3 million tonnes of billets per annum at its Kemaman plant in Terengganu. Its Gurun plant in Kedah produces about 1.2 million tonnes of steel bars, wire rods, beams, sections, bolts and nuts, nails and wire meshes.
16 hours ago
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