Sipitang steel plant to show progress by July
KOTA KINABALU (June 13): Esteel Enterprise's RM31 billion steel processing plant at the Sipitang Oil and Gas Industrial Park (SOGIP) is expected to show visible physical progress by July this year.
State Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe said the ministry recently received a formal letter from the company reaffirming its commitment to the project.
Following the issuance of the Federal Manufacturing License in January 2025, Esteel quickly moved to sign a gas supply agreement with Sabah Energy Corporation and Petronas in February.
Phoong said the months of March and April were dedicated to a competitive bidding process to appoint a joint tender (JT) contractor in China. This process concluded with the selection of China Communications Construction Company (CCCC) on May 30.
'This marks the official beginning of the project's implementation phase. Both Esteel and CCCC are confident that by July and August 2025, we will witness substantial transformation at the SOGIP site,' he said.
Phoong, who is also Luyang assemblyman, criticised Elopura assemblyman Calvin Chong for politicising the matter and lodging a police report alleging a lack of progress at the site.
'As elected representatives, we can raise such issues during State Assembly sittings. There's no need to resort to police reports. Ask me in DUN — I am ready to answer any question about Esteel,' he said at a press conference at Wisma Kewangan today.
'Don't politicise genuine investors. It deters our efforts to attract more investments and grow the state's industrial sector.'
He assured that the green steel manufacturing project will proceed as planned, stressing the strong commitment from both Esteel and the state government.
Phoong also highlighted that the project has been thoroughly vetted by the Malaysian Investment Development Authority and the Ministry of Investment, Trade and Industry.
He added that Esteel's parent company, Singapore-based GreenSteel Limited, is a legitimate entity — recently acquiring shares in Penang-based Southern Steel Bhd and already owning Antara Steel in Labuan.
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