Kiswire to inject RM1.8bil to Bolster M’sian Operations
Kiswire Malaysia, a division of South Korea’s major steel wire producer Kiswire Ltd, will inject RM1.8bil in fresh investments in Johor as it embarks on a mission to turn Malaysia into a production hub for high-carbon steel wire products in South-East Asia.
Kiswire Ltd chairman Hong Yong Chul said the capital injection was to upgrade its operations with the aim of boosting its annual production capacity.
“The new aim is to increase annual production capacity in Malaysia from the current 200,000 tonnes to 500,000 tonnes by 2020,” he said at the opening of Kota Kiswire by Deputy Prime Minister Tan Sri Muhyiddin Yassin.
The 300,000-sq-ft Kota Kiswire will operate as the regional headquarters for the South Korean steel wire producer’s operations in South-East Asia. The head office will also oversee sales and administration. One of the three main blocks of Kota Kiswire will be used as Kiswire Malaysia’s research and development centre.
Kiswire Malaysia, which currently employs 1,200 workers, has been operating in Johor since 1990 and exported its products to 70 countries. It expects RM1bil turnover this year. Chol said that this year, Kiswire Malaysia had built an additional plant costing RM410mil at Tanjung Langsat Industrial Complex to cope with the growing demand for its Neptune products. He said Kiswire Malaysia was now capable of producing the world’s biggest and longest heavy-duty steel wire ropes widely used for offshore oil drilling and gas industries.
“These achievements were made despite facing stiff challenges from the global economic crisis. “However, it was made possible with the full support and cooperation of the Malaysian and Johor governments, together with the passion of the Kiswire family members,” he added.
Kiswire Malaysia was formed in 1989 and its first factory was built at Pasir Gudang Industrial Complex in 1990. In 1991, its annual production was only 1,000 tonnes, with less than 50 employees.