KUALA LUMPUR (Dec 17): Hiap Teck Venture Bhd's an integrated steel mill in Kemaman, Terengganu, is currently undergoing a trial-run, said its deputy chairman Tan Sri Law Tien Seng, who controls 26.31% stake.
 
"The plant is already completed and on trial run. We are just waiting for the production to start running smoothly. So if there's no major problems, we should start producing before year end," Law told the media, after the company’s AGM today.

He added that the plant should start "mass" production in March next year (2015). The plant has a full capacity of 60,000 tonnes per month.

Revenue and profit contribution from the plant will kick-in next year, Law said, but he declined to divulge of the expected amount.

Law reveals that the plant has already received orders from local customers.

"We are looking at 40% sales from local customers and the remaining 60% from exports (such as Indonesia, Thailand and some from Taiwan as well) from this plant," he said.

The integrated steel mill is a joint-venture project between Hiap Teck and China Shougang International Trade and Engineering Corp. Shougang is also substantial shareholder of Hiap Teck, with an equity stake of 9.09%.