Land acquired for Baosteel’s first canmaking plant in Malaysia

Progress towards the construction of China-based canmaker Baosteel’s first beverage can plant in Malaysia has been made with the signing of a deal to acquire land at Puncak Alam in the Klang Valley of Selangor state.

Shanghai Baosteel Packaging is spending RM53.3 million (US$12.7m) on the 16-acre site at Eco Business Park V where the Baosteel Malaysia plant will be constructed.

The deal was sealed this week in a virtual signing ceremony that took place simultaneously in Kuala Lumpur and Shanghai.

EcoWorld Malaysia chief executive Chang Khim Wah signed on behalf of Paragon Pinnacle with Baosteel Packaging director Zhu Wei Lai. Paragon Pinnacle is a joint venture set up in November 2016. EcoWorld Malaysia owns 60 per cent and the Employees Provident Fund Board (EPF) the remainder.

Eco Business Park V, a 518-acre development undertaken by Eco World Development Group Bhd (EcoWorld Malaysia) through Paragon Pinnacle, is the group’s fourth business park development. With a total gross development value (GDV) of RM2.8bn ($669m), EBP V will be the largest single-project development in Malaysia.

“We are very happy that Baosteel Malaysia has chosen EBP V as the site for its new manufacturing facility in Malaysia,” said Chang. “Baosteel Malaysia’s decision to establish their business here will certainly contribute towards our efforts to make EBP V one of the best industrial parks in the country and a key job centre offering quality employment opportunities for the people of Selangor.”

Zhu added: “The collaboration between Baosteel and EcoWorld marks Baosteel’s further investment in Southeast Asia and Baosteel looks forward to further cooperation with EcoWorld in more areas.”

The project is Baosteel’s second outside China, the other being an established plant at Saigon in Vietnam. The news of the RMB461 million (US$66m) project by Baosteel Malaysia was revealed in a statement to the Shanghai Stock Exchange following a decision made at a board meeting on 22 May.

The first phase of the plant at Selangor will have capacity to produce 800 million D&I aluminium cans per year, with prospects for future expansion.

Shanghai Baosteel Packaging Co. Ltd, which is listed on the Shanghai Stock Exchange, is a subsidiary of China Baowu Steel Group Corporation Ltd.