“We are looking to export 10% of ColorCoat (prepainted steel) to Asean markets by next year and 30% three years from now,” he told reporters after the signing of a collaboration agreement with Beckers Industrial Coatings (M) Sdn Bhd here on Friday. He said the steelmaker’s current focus is the local market, with exports having a minimal contribution, due to the volatile global economy. The company will begin looking for potential joint venture opportunities in the region next year, possibly in Indonesia or Thailand, after the completion of its new production line in Klang, Selangor in the third quarter of this year. Yung Kong currently has three lines, one in Kuching, Sarawak and two in Klang. Of the Klang lines, one is a new line integrated with a RM30 million continuous colour coating line process. Soh said the new line will be commissioned in Q3 with a 100,000-tonne capacity per year, increasing the company’s revenue and capacity by RM100 million and 50%, respectively. Yung Kong posted a revenue of RM430 million last year. Its ColorCoat products contributed 35% to its overall revenue, which will increase up to 50% with the completion of the new line. Soh said any plans to upgrade the Kuching line with new technology will depend on demand for its products, while the existing line in Klang will be used for potential joint ventures from next year. The sustainable technology collaboration signed with Beckers will spearhead efforts in the production and usage of green building materials, enabling Yung Kong to offer products and solutions that adopt green technology. Part of the collaboration is the integration of the RM30 million continuous colour coating line process, which will reduce production waste and improve efficiency. The collaboration is expected to result in cost savings of 5-10% to Yung Kong. Beckers president of South Asia-Pacific and Middle East, Paul Menezes, said the collaboration will focus on developing energy-efficient design systems for heat reflected steel roofing sheets and walling panels for the building and construction industry.
Source: The Sun Daily