Kinsteel BHD plans to form a joint venture company with China-based Tianjin Qiangbang Industrial (TQI) to restart a steel plant in Gurun, Kedah, Malaysia. The Chinese company will have 40pc stake in the venture and yet to be identified Malaysian entity will hold 15pc, while Kinsteel’s subsidiary will retain 45pc stake. Kinsteel and TQI have signed a letter of intent for the joint venture.
Kinsteel’s subsidiary Kin Kee Steel Service Centre Sdn Bhd (KKSSC) was engaged in the manufacturing and trading of wire mesh. The company shut operations in December 2017. KKSSC has an existing bar and wire rod mill located in Gurun, Kedah along with a 60mt electric arc furnace, four induction furnaces and one ladle furnace.
The proposed JV will produce billets, wire rods, spring steel flat bars – used for vehicles leaf springs, till blades and chain products – and laminated leaf springs. The facility’s annual installed capacity will be 500,000mt. The plant is scheduled to commence operations in March 2021.
Tianjin Qiangbang Industrial is a private steelmaker based in Xizhaizhuang economic zone, Jinghai, Tianjin, China.