Maegma Steel HRC Sdn Bhd, a subsidiary of Kuala Lumpur-based Melewar Industrial Group (MIG), is in the final stages of setting up an integrated steel mill in Lumut, Malaysia, after the signing of a gas sales agreement with Malaysian state-owned gas company Petronas on 25 June 2012, according to Malaysian national news agency Bernama.

According to the news report, Maegma Steel CEO Uwe Ahrens said the company is ready to start the project after having obtained all relevant government approvals and licenses, and has carried out all studies from marine and geotechnical to detailed environmental impact assessment and basic design.

Construction of the plant is scheduled to begin by July next year and the facility is expected to be commissioned by June 2015. The project, with an initial investment of MYR 4.5 billion (US$1.407 billion), is designed to produce three million tonnes of HRC per year in its first phase and meant to meet domestic demand. The second phase of the project aims to export 20% of production to Europe and southeast Asia.