Eastern Steel Sdn Bhd (ESSB) is an Integrated Iron and Steel Mill under the joint venture of Hiap Teck Venture Berhad (HTVB) with Shougang Group of China. HTVB is one of the leading steel companies in Malaysia and listed on the main board of Bursa Malaysia Securities Berhad in 2003. Eastern Steel’s foreign partner – Shougang Group of China was established in the year 1919. Shougang is a well-diversified group in the iron and steel making, mining, machinery, electronics, architecture, real estate, service, overseas engineering contracting and trading.
The change in ownership structure of Eastern Steel Sdn. Bhd. (“ESSB”), started in March 2018, was completed in the FY 2019. Following this, the shareholders of ESSB are now Shanxi Jianlong Industry Company Ltd. (“Jianlong”), HTVB and Chinaco Investment Pte. Ltd. (“Chinaco”) with shareholdings of 60%, 35% and 5%, respectively.
ESSB, now a 35%-owned (from 55% previously) joint-venture of HTVB, operates a fully integrated blast furnace steel plant with a rated annual production capacity of 700,000 MT. With the strong support and technical assistance from our new partner, Jianlong, ESSB has successfully re-ignited its blast furnace and resumed production on 16 July 2019. Production has been smooth since and the plant is now running at above rated capacity. In FY 2019, ESSB has also successfully added a billet caster and commenced construction of a 55MW power plant and will complete in October 2019. The addition of billets to our offering of slabs will afford ESSB the flexibility to optimize its revenue mix, while the completion of the power plant will further help reduce production cost.
ESSB manufactures steel slabs for the steel re-rolling industries. Its manufacturing complex occupies 1200 acres of land and located at Teluk Kalung, Kemaman, Terengganu. The plant comprises of:-
* Raw Material Yard
* Ironmaking Plant:
* Sinter Plant
* Blast Furnace Plant
* Pig Iron Caster
* Steelmaking Plant:
* Converter with Ladle Refining Furnace
* Slab Continuous Casting Machine
* Oxygen Plant
* Billet Caster Plant
* 55MV Power Plant
Its production capacity is 700,000 metric tons per annum and aims to achieve an annual production of 3 million metric tons in the near future.