The plant has been operating intermittently, depending on market conditions. Two weeks ago, Bursa Malaysia rejected its fifth application for an extension, saying there had been no material development.
He notes that when Megasteel commenced operations inthe plant was too big and the total investment cost was too massive. Amsteel Corp Bhd was delisted in for the same reason — failure to work out a regularisation plan on time. Megasteel, which produces flat steel products, has the capacity to make 3.
Inthe Ministry of International Trade and Industry Miti imposed preliminary anti-dumping duties, ranging from 8.
In the mids, Lion Corp was trading at RM7 but it was just a penny stock when it was delisted. Local HRC producers are not able compete against foreign steel mills dumping their products here, he adds. But we have to face reality.
It is very sad for the shareholders that we have to be delisted as they have been supportive. Will it ever recover?
Last year, Miti set the final anti-dumping duties at between 2. In FY, its net loss had mounted to RM Lion Corp fell into PN17 category on Oct 25,and had its deadline to submit a regularisation plan extended four times in the past three years.
This is not the first company in the Lion group that has been delisted due to financial stress.
He remarks that the worst-case scenario for Megasteel is if the lenders and bondholders take irrational action against the company.
The company posted its first net loss of RM Apparently, the steel miller has not given up yet and is still looking for a white knight in the form of a foreign investor. The group is pinning its hopes on the government imposing protectionist measures so that production can resume at its plant.
Albert says the company is currently in talks with two Chinese steel players but negotiations have not got anywhere as the potential investors have many concerns, especially about the structure of the domestic steel industry and protection of local upstream players.
Many opine that time ran out for the PNstatus company as it failed to meet the deadline to submit a regularisation plan to revive its financial health. Executive director Tan Sri Albert Cheng claims Lion Corp was a victim of the liberalisation of the domestic steel industry, which led to the influx of cheap imports.
Without them, the industry will remain vulnerable, he adds.
On Sept 14, Lion Corp announced that Megasteel had temporarily ceased operations at its acre Banting facility as it had suffered losses over the past years due to excessive dumping of steel products by foreign millers.
In the past 10 years, except for a net profit of RM When we received the letter from Bursa to delist us on Oct 12, we engaged with the regulator.
He says the final anti-dumping duties on HRC are too low to stop the influx of imports. Then, an extension of the RO becomes vital.
Such measures, which are common in other countries, including Indonesia and Thailand, will help draw foreign players.Fuelled by the country’s economic growth and development, the increasing demand for steel has led to the Group’s venture into the flat steel products industry with the establishment of Megasteel Sdn Bhd.
Nov 25, · PETALING JAYA: The Malaysian Iron and Steel Industry Federation (Misif) is against Megasteel Sdn Bhd's request for safeguard duties on imports of hot rolled coils (HRC) into Malaysia. “Lion Corp’s asset value has been dropping due to Megasteel’s operational losses.
With the plant incurring losses over the years, our net asset value has been reduced,” Albert explains. Megasteel and other factories nearby, such as Lion DRI Sdn Bhd, at one time employed over 3, workers.
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