[The Malaysian Reserve] Masteel gets RM6.7m steel supply contract

Malaysia Steel Works (KL) Bhd (Masteel) has won a RM6.7 million high-tensile steel bars supply contract for the Klang Valley Mass Rail Transit (KVMRT) project.

The integrated steel manufacturer said that its location within the Klang Valley gave it an advantage to benefit from other upcoming projects which include the RM7 billion KL light rail transit extension, the RM1 billion New Pantai Expressway and the RM2 billion low-cost carrier terminal.

“We are poised to capitalise on these new opportunities, having continuously invested in our plant capacity and efficiency upgrades. Our third rolling mill, which is currently being constructed, will also allow us to benefit from all these prospects in the market,” said Masteel managing director/ chief executive officer Datuk Seri Tai Hean Leng (picture) in the company’s press release.

He expected the frequency and quantum of steel bars awards to intensify over the next three years as the KVMRT project implementation gains momentum.

Masteel has a 550,000 metric tonne (MT) per annum meltshop in Bukit Raja and a 350,000MT rolling mill in Petaling Jaya, both in Selangor.

The company expects its second rolling mill, to go operational by end 2013, to boost steel bar production by an additional 200,000MT.

In its last published financial results, Masteel posted a 23% increase in its second-quarter ended June 30, 2012, net profit to RM19 million or 9.02 sen earnings per share from RM15.48 million declared in the same quarter of the preceding year.

It also registered a 2% increase in revenue to RM344.13 million from RM338 million in the same quarter of preceding year.

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