Automotive steel an opportunity for local players

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KUALA LUMPUR: Local steel manufacturers should tap into the automotive industry by producing automotive-grade steel products, according to Malaysia Automotive Institute (MAI).

MAI chief executive officer Mohamad Madani Sahari told steel industry players yesterday that automotive-grade steel was one of the “missing linkages” in the local automotive industry “ecosystem”.

He hoped there would be more investments in this segment of the steel industry, which is a promoted subsector under the National Automotive Policy 2014.

“The manufacturing of automotive-grade steel is one of the subsectors yet to be explored,” he said at the MISIF 11th Conference on the Status & Outlook of The Malaysian Iron & Steel Industry.

The government wants to encourage domestic investments in this segment of the steel industry as it is strategic for the local automotive industry, he added.

This article first appeared in The Edge Financial Daily, on October 17, 2014.