Malaysia’s Eastern Steel has signed a contract with China Shougang International Trade and Engineering Corp to build the first phase of its integrated steel mill in Teluk Kalung, Kemaman, Terengganu.

The contract value for the engineering and procurement contract is RM417.83M, while the construction contract is RM232M.

This integrated steel mill will have an annual capacity of 700kt/y of steel while the completed integrated steel mill will have a total capacity of 3.5Mt/y of steel.

The project is expected to be completed by 2013.