Eastern Steel secures funds for RM1.8b mill

by **hlk** Mon 05 Dec 2011, 08:20

PETALING JAYA: Eastern Steel Sdn Bhd has secured funding for the construction of its RM1.8bil steel mill in the Kemaman Heavy Industrial Park, banking sources said.

The banks involved are HSBC, Bank of China and Industrial and Commercial Bank of China, the sources said.

It isn't clear what the debt equity ratio for the project is but the debt funding from the banks would be announced this week.

Eastern Steel is a joint venture between China Shougang Group and Hiap Teck Venture Bhd.

The first stage of phase one of the mill, with an annual production capacity of 700,000 tonnes of steel, is expected to be completed by mid-2013 at a cost of RM750mil.

The groundbreaking ceremony of the steel mill would take place today, witnessed by Terengganu Mentri Besar Datuk Seri Ahmad Said.