PETALING JAYA: Lion Industries Corp Bhd
has clarified that its subsidiary, Amsteel Mills Sdn Bhd, remains in operation and that it has no plans to shut down its steel mills, except for upgrading purposes.
In a filing with Bursa Malaysia, the group said it issued the clarification following a recent news report suggesting that Lion Industries could close Amsteel’s two mills located in Bukit Raja, Klang, and Banting.
It said Amsteel’s Bukit Raja plant, which has been operating since 1978, continues to run as usual.
“As the machinery and equipment in the plant have been in use for the last 47 years, we are looking to upgrade and instal new machinery and processes, and seeking strategic partners who can provide the new technologies and processes.
“This will make the plant more efficient and cost-competitive, and keep abreast with market conditions and demands,” Lion Industries said.
As for Amsteel’s Banting plant, Lion Industries said operations there have been temporarily suspended due to high operating costs, particularly the increase in electricity tariffs that rendered operations economically unfeasible.
“We are exploring options to revitalise the operations, including looking for strategic partners to introduce new processes and new products for this plant, and will make the necessary announcement when a suitable partner is ready,” it said.
“We wish to stress that the steel business is still very much the core business of Lion Industries and has no plans to shut Amsteel Mills other than for upgrading purposes.”
