Stainless JV in Malaysia

FACB Industries Inc. Bhd subsidiary Kanzen Tetsu Sdn Bhd has teamed up with Arcelor group to set up a stainless steel shearing and slitting facility in Shah Alam, Selangor, Malaysia. Chairman Datuk Sulaiman Sujak said the newly-formed joint-venture company Kanzen Stainless Processors Sdn Bhd (KSP) had invested RM 26.6 million, mainly in machinery and working capital. KSP, which is 70%-owned by Kanzen Tetsu and 30%-owned by Arcelor subsidiary Arcelor Stainless International, and has a paid-up capital of RM7 million, will be primarily involved in processing and shearing of stainless coils into a wide range of products including plates, sheets and strips for both the local and Asean markets. Sulaiman said KSP would cater to a niche market in cut-to-length stainless steel up to 12mm thickness and 2m wide. Sulaiman said demand for stainless steel was on the rise due to increasing need for hygienic, corrosion-resistant and durability goods and there was still tremendous growth in the local industry. “Malaysia’s stainless steel consumption has risen from 3.6kg per capita in 1998 to 6kg in 2002 versus 46kg for Taiwan in 2002,’’ he added. He said KSP’s products and services were targeted at high-growth industries such as oleo-chemical, oil and gas, food and beverage, pressure vessel and petrochemical industries. Kanzen Tetsu is the largest integrated maker of stainless steel welded pipes and butt-welded fittings in SE Asia. It has 60% market share locally and exports 75% of its output to 50 countries world-wide.

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