Masteel looks for closure for rail project with new Minister

SHAH ALAM: Malaysia Steel Works (KL) Bhd (Masteel), which expects its new rolling mill in Bukit Raja, Klang to generate an additional RM400 million in revenue at full capacity in 2016, looks forward to working with the newly appointed Transport Minister to bring a closure to the controversial rail transit network project linking Iskandar Malaysia in Johor and Woodlands, Singapore that is yet to take off.
Masteel managing director and CEO Datuk Seri Tai Hean Leng said the delay was due to no decision by the Ministry of Transport (MOT), partly due to the 13th general election and the absence of a Minister.
Masteel has obtained some approvals for the project, but many more are still pending.
Tai said Masteel remains committed to the joint venture company with KUB Malaysia Bhd, called Metropolitan Commuter Network Sdn Bhd.
"This falls under the auspices of MOT and there was no Transport Minister for a long time. Datuk Seri Hishammuddin Hussein was acting Transport Minister until the appointment of Datuk Seri Liow Tiong Lai on Wednesday," he told a press conference after its AGM here yesterday.
Tai said Masteel is still coordinating with the government agencies and has a series of meetings with the Johor state government next week.
"We're looking forward to the appointment of the new Transport Minister (and) to work closely with MOT to speed up the approval of this project.
"We're still following through with the project. We just need the Ministry to function in a normal manner so that they can work with us and we can put forward our conditions," said Tai.
On how long the process will take, he said it is difficult to give an indication, as it would depend on the Minister, but Masteel will work speedily to bring closure to this project.
Meanwhile, Masteel is allocating a capital expenditure of RM100 million for this year and next year to accelerate the ongoing capacity expansion of its plants.
Masteel is currently upgrading the group's billet plant in Bukit Raja, Klang to produce 700,000 tonnes of steel billets per year from 650,000 tonnes previously. The upgrade is scheduled for completion by the end of 2014.
This is on top of the group's construction of a new 200,000 tonnes rolling mill in Bukit Raja, targeted to be ready in 2015.
By year-end, its billet plant will be able to produce 700,000 tonnes annually, while by end-2015, its rolling mills will produce 650,000 tonnes premium deform bars per year.