The new steel processing plant built at an investment of $17 million has become operational in Kampong Speu province in Cambodia. The new plant, named Hong De Sheng (Cambodia), uses recycled steel and steel scrap as raw materials and has a full processing capacity of 500,000 tonnes per year. The steel produced at the mill will serve the rising steel demand from the local construction sector.
According to Lin Xiangrong, chairman of Hong De Sheng (Cambodia), the plant, in its initial phase of operation, will domestically source steel, recycled steel and scrap metal to produce finished steel. If needed, it may even import metals at a later stage. He commended the support extended by the national and local administration in setting up the plant. The plant currently employs nearly 250 local workers, he noted.
Meantime, the Ministry of Industry, Science, Technology and Innovation, Cambodia said that the plant’s operations would immensely benefit the construction sector in the country, which by and large has not been impacted by Covid-19 pandemic troubles.
Upon full operation, the plant could help the country in reducing its dependence on steel imports. Incidentally, the country imported nearly 720,000 tonnes of steel during the previous year.
This is the third steel production plant in the country that uses recycled scrap metal to produce finished steel products.
