Heap Tack’s RM1.8bn integrated steel complex in Seaman, Terengganu, Malaysia is forecasted to contribute 50% of group profits in 2014.
The site is to have one blast furnace and a steel shop capacity of 700kt/y of slab in phase one.
With a second furnace expansion to 1.5Mt/y in a second phase the plant could contribute as much as 75% to 80% of group profits.
The investment cost for phase one is RM754M (US$241M) and is due to be completed by mid-2013.
Phase two is expected to involve a further investment of RM1.05bn ($335.8M), and would be scheduled for completion 10 months after phase one becomes operational.
The complex is being developed by Eastern Steel Son Bhd in which Hiap Teck Ventures has a 55% stake, China Shougang Group has 40% and Chinaco Investment Pte Ltd has 5%. China Shougang, through its unit Shougang Singapore, is taking up a private placement of 32.2 million new shares (a 9.84% stake) in Hiap Tack.