Kinsteel Announces Chinese JV to Operate Kedah Steel Plant

SEATTLE (Scrap Monster):  Kin Kee Steel Service Centre Sdn Bhd (KKSSC)- Kinsteel Bhd’s wholly-owned subsidiary announced that it has entered into a letter of intent (LOI) with Chinese Tianjiin Qiangbang Industrial Co Ltd to form a joint venture company. The proposed joint venture project aims to give new life to steel plant in Kedah.

In a filing with Malaysian stock exchange Bursa Malaysia, KKSSC noted that it will have 45% equity interest in the joint venture. 40% interest will be owned by Qiangbang, whereas the remaining 15% will be owned by a company of Malaysian origin, whose name was not disclosed. The joint venture company will have an expected paid-up capital of RM10 million, as per the filing.

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The Kedah steel plant is expected to begin operations in March next year. It will have an installed production capacity of 500,000 metric tonnes per annum and will be capable of producing a wide range of steel products including billet, wire rod, spring steel flat bar and laminated leaf spring.

The joint venture will lead to amalgamation of operating capabilities and experience in production of core steel products. Further, it will boost the business growth of KKSSC, which has been idle for many years now.