Malaysia Steel Works (KL) Bhd (Masteel) recorded a pre-tax profit of RM30.1 million for financial year ended Dec 31, 2010 compared to a pre-tax loss of RM8.5 million in the same period of 2009. Its revenue surged to RM1.0 billion from RM687.3 million previously.

In a statement today, managing director/chief executive officer, Datuk Seri Tai Hean Leng, said RM1 billion revenue was not merely a milestone in the group's corporate history, but more so a reflection of its scale of operations since its establishment 40 years ago.

'Given that our electric arc furnace uses scrap metal as the primary feed stock, our steel manufacturing operations are shielded from the impact of rising iron ore and coking coal prices,' he said.

Tai said coupled with the anticipated higher demand for steel bars and billets resulting from the expected recovery in global markets, Masteel was optimistic of sustaining its growth momentum moving forward.

For the fourth quarter ended Dec 31, 2010 its pre-tax profit fell to RM9.68 million from RM10.60 million in the same period of 2009.

'This was largely due to a one-off RM4.3 million provision for a legal suit,' it said. Its revenue increased to RM292 million from RM191.7 million previously. -- Bernama