Sabah Denies Umno Man S Claim Steel Firm Delaying Rm19bil Project

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Sabah chief minister Hajiji Noor (centre) witnessing the exchange of documents between SOGDC chairman Abdul Rahman Dahlan (right) and Esteel Enterprise Sabah managing director Xu Yihang at the land lease agreement signing ceremony in 2022. (Japen pic)
PETALING JAYA: The Sabah government has rubbished an Umno man’s claim that a steel company delayed the implementation of a US$4.39 billion (RM19.6 billion) production plant in the state.
Sabah industrial development minister Phoong Jin Zhe said there were claims that Esteel Enterprise Sabah Sdn Bhd had postponed its investment in Sabah due to an apparent loss in confidence in the state government.
He said such claims were baseless and did not reflect reality as the first phase of Esteel’s investment was going according to plan.
Phoong, who is also the state DAP chief, said the development plan for the environmentally friendly steel production plant had been approved by the Sipitang district council, and an environmental impact assessment report for the plant’s earthwork had received the environment department’s green light.
“Soil investigation for the site for Phase 1 of the plant has been done, and soil investigation in the seabed for the development of a jetty is being conducted.
“The terms of reference for the full EIA have been completed and will be submitted to the environment department for approval,” he said in a statement.
Phoong said a factory manufacturing licence for Phase 1 of the project had been approved by Putrajaya on Jan 24
Sabah Umno election director Jeffery Nor Mohamed earlier claimed that Esteel had postponed the project due to a loss of confidence in the state administration, purportedly over instability and credibility issues.
The Putatan Umno chief claimed that sources told him about the matter, alleging there had been no progress on the project site.
Phoong said Esteel had informed the state government that construction of the plant was expected to commence in May.
He said the ministry continues to hold engagements with the firm’s top management to facilitate their investment in Sabah.
“As proof of Esteel’s commitment to continue its investment in Sabah, a land lease agreement for Phase 2 and 3 at the Sipitang Oil and Gas Industrial Park was signed on Dec 31.
“This proves the company’s confidence in Sabah’s stability and the state government’s support in realising this high-impact investment.
“The state government will work to ensure the operations of this factory can be expedited to benefit the economy of Sabah and the people,” he said. - FMT

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