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Production Starts at Bahru Stainless
12/29/2011 - Bahru Stainless recently started up its factory in Johor Bahru, Malaysia, successfully processing its first coil in the annealing and pickling line AP1 on December 12.
Bahru Stainless recently started up its factory in Johor Bahru, Malaysia, successfully processing its first coil in the annealing and pickling line AP1 on December 12. Startup of the annealing and pickling line completes Phase I of the project.
According to the company, the first tests of the Phase I equipment have been very satisfactory, with good quality and steady operation. Phase I for the new plant comprises a cold rolling with a 1500-mm wide Sendzimir, a combined annealing and pickling line, and skinpass and finishing mills. Its annual production capacity amounts to 240,000 million tonnes, of which 182,000 million tonnes will be cold rolled. The initial phase represents an investment of 370 million USD.
The Phase I startup event is the culmination of a long process started in 2007 with feasibility studies. The landmark strengthens Acerinox Group’s position as one of the most global stainless steel producers with four factories in four continents. The location is also supported by strong local consumption growth.
According to the company, construction of Phase II is proceeding at a good pace. The second phase, which is scheduled to start up in the first quarter 2013, will increase the facility’s annual production capacity to 400,000 million tonnes. Likewise, it will allow Bahru Stainless to produce special steel grades and thin thicknesses, which are products with more added value.
Additions with the second phase will include a cold rolling mill (ZM2), cold annealing and pickling line (AP2), auxiliary lines, a laboratory, and an electric substation, which in the future will also feed the electric furnaces when they are in operation. Investment for the second phase is estimated at 310 million USD.
The project in its final stage will be an integrated stainless steel factory with an annual melting capacity of 1 million tonnes and an annual cold rolling capacity of 600,000 tonnes.
Bahru Stainless is a subsidiary of ACERINOX Group (67% stake) which has been incorporated together with Nisshin Steel (30% stake) and Metal One (3% stake). The current staff totals 227 workers, 96% are Malaysian. Most of them have been trained in the factories of Acerinox Europe (Spain) and Columbus Stainless (South Africa). Bahru Stainless is Malaysia’s first producer of stainless steel, and products to a great extent will be aimed to export.
