KUALA LUMPUR (Aug 2): Hiap Teck Venture Bhd said that its 27.3%-owned joint venture (JV) company, Eastern Steel Sdn Bhd (ESSB) — has ignited its newly completed 1,380 cu m blast furnace plant on Tuesday (Aug 1).

In a bourse filing on Wednesday (Aug 2), Hiap Teck shared that with the successful ignition of the new blast furnace, ESSB’s production capacity will increase from the current 700,000 tonnes of steel slabs and billets to 2.7 metric tonnes annually.

ESSB’s production is mainly targeted to be sold locally to satisfy domestic demand and also to export to neighbouring countries, principally in Southeast Asia and North Asia.

ESSB is primarily involved in the manufacturing, selling and dealing in a range of steel products utilising the blast furnace.

Hiap Teck said the completion of ESSB’s new blast furnace plant will significantly expand ESSB’s revenue and earnings, therefore contributing positively towards the future performance of the Hiap Teck group.

Shares of Hiap Teck closed unchanged at 34 sen, giving the group a market capitalisation of RM585.74 million.