China Steel Corp inks joint-venture deal for ferro-alloy plant in Malaysia
A total of $328 million will be injected into a new ferro-alloy plant in Malaysia jointly set up by South Africa’s Assmang, Japan’s Sumitomo Corp and Taiwan’s China Steel Corp (CSC).
Paragraph entered by Atlantic migration, in order for SteelFirst articles to display correctly on Metal Bulletin.
The three companies signed a deal on October 10 to invest in the joint-venture company, Sakura Ferroalloys Sdn Bhd, in Kuching in the East Malaysian state of Sarawak, according to a statement from CSC this week.
The 113-hectare plant, to be built in the still developing Samalaju industrial park, some 60 km north of Bintulu in Sarawak state, will have an output capacity of 108,000 tpy of high carbon ferro-manganese and 61,000 tpy of silico-manganese.
CSC has an off-take allocation of about 30,000 tpy from this project, which is equivalent to 30% of its annual raw material needs.
The plant is slated to begin production by the end of 2015, CSC said.
Assmang holds a 54.36% stake in the plant, while Sumitomo Corp owns 26.64% and China Steel Corp the remaining 19%.