KUALA LUMPUR: Perwaja Holdings Bhd (Perwaja) is to build the first concentration and pelletising plant to produce iron ore pellets in Malaysia at a cost of RM201.54 million to be located in Kemaman, Terengganu.
The proposed plant, which will be built in Kemaman where Perwaja's existing direct reduction plant is located, will have an annual production capacity of up to 1.2 tonnes.
In a filing to Bursa Malaysia on Monday, Oct 25, Perwaja said its wholly owned subsidiary Perwaja Steel Sdn Bhd (PSSB) had entered into a contract with China-based Sinosteel Equipment & Engineering Co. Ltd of China (Sinosteel MEC) for the design and CONSTRUCTION [] of the plant.
Perwaja said the project would be financed via a combination of of bank borrowings and internally generated funds, the proportion of which will be decided by the management of PSSB.
On the rationale for the project, Perwaja said it would further strengthen PSSB's position as one of the leading upstream steel producer in Malaysia.
It said having its own concentration and pelletising plant would enable PSSB to reduce dependencies on imported pellets, thus facilitating better project management for its production and sales requirement.
'It also allows PSSB to be more cost competitive in its move towards producing higher value added steel products.
'Implementation of the project will further help to prevent PSSB from any unanticipated disruption of supply of pellets and ensure stable supply of pellets,' it said.
'The management of PSSB intends to implement phase two of the project within five years to further increase the production capacity of the concentration and pelletising plant to 2.4 tonnes,' it said.
The proposed plant, which will be built in Kemaman where Perwaja's existing direct reduction plant is located, will have an annual production capacity of up to 1.2 tonnes.
In a filing to Bursa Malaysia on Monday, Oct 25, Perwaja said its wholly owned subsidiary Perwaja Steel Sdn Bhd (PSSB) had entered into a contract with China-based Sinosteel Equipment & Engineering Co. Ltd of China (Sinosteel MEC) for the design and CONSTRUCTION [] of the plant.
Perwaja said the project would be financed via a combination of of bank borrowings and internally generated funds, the proportion of which will be decided by the management of PSSB.
On the rationale for the project, Perwaja said it would further strengthen PSSB's position as one of the leading upstream steel producer in Malaysia.
It said having its own concentration and pelletising plant would enable PSSB to reduce dependencies on imported pellets, thus facilitating better project management for its production and sales requirement.
'It also allows PSSB to be more cost competitive in its move towards producing higher value added steel products.
'Implementation of the project will further help to prevent PSSB from any unanticipated disruption of supply of pellets and ensure stable supply of pellets,' it said.
'The management of PSSB intends to implement phase two of the project within five years to further increase the production capacity of the concentration and pelletising plant to 2.4 tonnes,' it said.
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