Terengganu Continues To Attract Foreign Investors
12/5/2011 -- BERNAMA

Terengganu continues to attract foreign investors with the latest being a steel producer from China which has signed an agreement for the setting up of an integrated steel mill in the state.

Menteri Besar Terengganu Datuk Seri Ahmad Said said the establishment of Eastern Steel Sdn Bhd (Eastern Steel)'s plant at the Kemaman Heavy Industries Park (KHIP) in Teluk Kalong, here, at a total cost of RM3.8 billion, was a testament of the confidence foreign investors had in Terengganu.

"Prior to this, the Polimer Park in Kerteh had attracted investments from Korea and France which will amount to RM2 billion beginning next year, while there have been other major foreign investments as well including in shrimp farming in Marang.

"This proves that the moves and efforts taken by the state government to attract investments have been successful," he said to reporters at the ground breaking ceremony for the Eastern Steel plant here Monday.

Eastern Steel is a joint venture between local company, Hiap Teck Venture Bhd (HTVB) and Chinese company, China Shougang Group.

Also present at today's event were China's Ambassador to Malaysia, Chai Xi, Executive Chairman of Eastern Steel Tan Sri Alwi Jantan, Chairman of China Shougang Group, Zhu Jimin and Chief Executive Officer of the East Coast Economic Regional Development Council (ECERDC) which is the developer of the KHIP.

China Shougang is a leading steel producer in China.

The steel plant in KHIP, to be built under two phases, will cover an area of 1,200 acres and produce 3.5 million metric tonnes of steel a year.

The project is expected to provide 2,000 new job opportunities with most of them to be taken by Terengganu locals.

"We also hope that the downstream activities will be expanded by the people here to support the heavy industries here," Ahmad said.

He said the state government has also not set any limit for Eastern Steel when mining iron ore in a 600-acre area in Bukit Besi allocated to the company and that it would be able to mine for Grade A iron ore till it is depleted.

The iron ore reserves in Bukit Besi, Dungun is estimated at 45 to 50 million metric tonnes while in Kemaman is is estimated at 25 million metric tonnes.

Ahmad said the iron ore mining area in Bukit Besi had been divided into four parts with each area allocated 600 acres.

Besides Eastern Steel, Perwaja Steel Sdn Bhd has been given one area while the remaining two areas would be given to interested investors, he said.

Several companies have shown interest but one condition is that they have to invest here and therefore open up their plant here, he said.

Ahmad said an added advantage for investors was the availability of a deep-water port here.

There are also plans to build a canal which will make it easier for the transportation of the processed steel to the port for export, he said.

For this, the Federal Government will be upgrading the facility at the port with a cost of RM300 million, he said.

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