Chinese investors are actively strengthening their growing position in Southeast Asia and are planning to build another integrated steel plant in Malaysia in the near future. China Smelter Group, China Communications Industry Investment Holding Co., Ltd. and Wen'an Iron and Steel Co. recently announced plans to build a comprehensive steel plant in Samaraju Industrial Park in Bintulu, Malaysia. The designed capacity of the plant has increased from 3.5 million tons per year to 10 million tons per year, and will become the largest steel plant in Southeast Asia after completion. According to the statement, the project is expected to start Earthwork by the end of 2019 and construction by the middle of 2020. Details of the production portfolio have not yet been disclosed.

This is not the first time that Chinese companies have invested in Malaysia's steel industry this year. In July this year, China Hebei Xinwuan Iron and Steel Group Co. and China Smelter Group announced their plans to launch a new 5 million tons/year comprehensive steel construction project in Samaraju Industrial Park in Bintulu.

Most local steelmakers in Malaysia believe that Chinese investors'plans are too ambitious and that further growth in steel production will depress Malaysia's domestic market and lead to a surge in exports. Considering that Malaysia's domestic demand for finished steel increased by only 3.5% last year and Malaysia's construction industry is expected to grow by only 3% in 2019, relevant experts estimate that the export market will remain the main development goal of the new steel mill.