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Leader Steel to make rebars BY DAVID TAN The Star
BUKIT TENGAH: Leader Steel Holdings Bhd plans to start production of steel concrete reinforcing bars for the local construction industry soon.
Group managing director Datin Tan Pak Say told StarBiz this was the right time to start production of such reinforcing bars, known also as steel rebars, for the local market. " The recent imposition of the 13.42% safeguard duty on imported steel concrete bars from 40 countries, which include China, has made it expensive for local hardware companies to buy from overseas. “ With this safeguard duty in place, the imported steel rebars will find it hard to compete with us. “Leveraging on our existing production facilities, we can produce better quality steel rebars at a much more competitive pricing,” she said. Tan added that the group had yet to decide which of its facilities in the country would be used to produce the steel concrete reinforcing bars. Leader Steel presently has plants in Bukit Minyak, Sungai Bakap, Kuching and Klang. “We are now preparing to start production. “We can expect this segment of the business to start contributing positively in 2018” she added. On the first quarter ended March 31, 2017, Tan said the group expected performance to improve by a double-digit percentage over the same period a year ago. “The performance would be boosted by the rise in steel pipe prices and the lower prices of essential raw materials such as cold-rolled and hot-rolled coils. “This first quarter would be one of the top-performing quarters in the past three years,” she said. Moving on, Tan said the group expected steel prices to remain stable this year. Currently, the price of locally sourced cold-rolled coils is about RM3,000 per tonne, while the price of imported hot-rolled coils, which is not available in the local market, is hovering around RM2,500 per tonne. She said steel-pipe prices had been on the rise since the second quarter of 2016 due to the stringent conditions regulating the entry of imported steel products. “Since late 2013, imported steel products need to have product certificate licensing and a certificate of approval to sell in the country. “As a result, there is less competition from low-quality steel products from overseas. "The anti-dumping duties introduced in early 2015 for hot-rolled and cold-rolled coils from China are also beginning to produce results,” she added. For the 2016 financial year ended Dec 31, the group posted RM6.75mil in net profit on the back of a RM167.3mil turnover.
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Look like serious tis time. GOOD
2017-05-03 11:46