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Shougang builds a million ton comprehensive steel plant in Malaysia
Shougang builds a million ton comprehensive steel plant in Malaysia
Shougang Group has continuously achieved new results in expanding its overseas business. On December 5th, Zhongshou Company, together with partners such as Malaysia's Xiede Holdings, jointly invested in the construction of the Donggang Comprehensive Steel Plant project in Ganmawan, a special economic zone in eastern Malaysia. The first phase of the project was officially launched at the same time. This is the first time that Shougang Group has invested in building a comprehensive steel plant overseas. After the completion of the first phase of the project, the annual output will be 1.5 million tons, and the planned annual production capacity after the completion of the entire project will reach 3 million tons.
Chinese Ambassador to Malaysia Chai Xi, leaders of Shougang Corporation Zhu Jimin and Xu Jianguo, and local government officials from Malaysia attended the groundbreaking ceremony.
Shougang Group actively responds to the "going global" strategy of China's steel industry and strives to develop steel projects in Southeast Asia and other countries and regions. As a wholly-owned subsidiary of Shougang responsible for overseas investment business, Zhongshou Company has identified the huge development potential of the Malaysian steel industry in overseas project contracting and actively carried out the contracting and development work for the Donggang Comprehensive Steel Plant project. After completing the feasibility study report, preliminary design scheme, and local government approval in the early stage, the board of directors of Shougang Corporation approved the construction and equity participation of Shougang in the Malaysia East Steel Integrated Steel Plant project on April 26, 2011. On July 8, a letter of intent for cooperation was signed in Malaysia. On July 22, a signing ceremony for the Malaysia Integrated Steel Plant project was held with Malaysia Xiede Holdings Limited, East Steel Group Limited, East Steel Investment Limited, and Chinaco. On September 27, it was approved by the Beijing Municipal Development and Reform Commission. On November 10th, Zhongshou Company signed the "Malaysia East Steel Group Phase I 1.5 Million Tons/Year Comprehensive Steel Plant EPC General Contract" with Beijing Industrial Design and Research Institute.
It is reported that Zhongshou Company owns 40% of the equity of Donggang Company and, together with the controlling shareholder of Donggang Group, Xiede Company, will build Donggang into the only comprehensive steel plant in Southeast Asia with complete production processes. The engineering project includes the design, equipment supply, civil construction, equipment installation and commissioning, and production technical services of the material yard, coking, sintering, ironmaking, steelmaking, large slab continuous casting, and all supporting facilities.
It is reported that the Malaysian government has provided a series of preferential policies for the project. Shougang will make full use of Malaysia's special policies and conditions, do a good job in all aspects of the project, and create a project with demonstration and leading role. Shougang will leverage the Malaysia Donggang Integrated Steel Plant project to enter the ASEAN market and further enhance the overseas influence of the Shougang brand.
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