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Acerinox and Nisshin Steel to Build Stainless Mill in Malaysia

03/07/2008 - Long-time venture partners Acerinox SA and Nisshin Steel announce they will build a new integrated stainless steel production plant in Malaysia.

Acerinox SA and Nisshin Steel announced they will build a new stainless steel production plant in Malaysia. Their decision follows a full-scale feasibility study and consideration of various alternatives.
 

With this new venture, Acerinox and Nisshin Steel, which have been in cooperation together for 38 years, say they demonstrate their intention to continue their alliance and to continue to open new fields of mutual cooperation.
 
This investment will significantly enhance development in Malaysia, including its exports and the stainless steel market.
 
The new integrated stainless steel production plant will be constructed in successive stages, and with high efficiency criteria, similar to those of North American Stainless in Ghent, Ky., which is owned by Acerinox. It will have a melting capacity of 1 million tonnes/year and 600,000 tonnes/year of cold rolled production. The estimated total investment amounts to $1,500 million USD. The facility is to be located in Johor Bahru, Malaysia, which is close to the sea.

 
In the first stage, a cold rolling mill with a 1500-mm wide Sendzimir mill will be installed, along with a combined annealing and pickling line, skinpass, and finishing mill. Its production capacity will amount to 240,000 tonnes/year, of which 182,000 tonnes/year will be cold rolled. The first stage represents a total investment of $320 million USD.
 
Construction for the first stage, which has already been approved, will start immediately after having finished the legal proceedings. The companies said that many native workers and local companies would be employed during the construction and assembly stage. When the plant comes on stream it is expected to create about 300 direct jobs in the first stage.
 
Acerinox Group had already established a strong, longstanding commercial presence in this area, which will be further strengthened with this investment. The investment, which will significantly enhance development in Malaysia, including its exports and the stainless steel market, is forecasted to start up in 2011.
 
The addition of this factory in Malaysia will increase the Acerinox Group’s total installed capacity to 4.5 million tonnes/year, including output from the Group’s three factories in Spain, the United States and South Africa.