KUCHING: Asteel Group Bhd is planning to export its metal roofing and set up roll-forming facilities in neighbouring countries to take advantage of their rapid development, said its group managing director Datuk Sri Victor Hii Lu Thian.
He said the expansion would start with Sarawak’s closest neighbour, Kalimantan in Indonesia.
Asteel group is principally involved in the manufacturing of coated steel products and processing of metal roofing, wall cladding & fencing, metal floor decking, light gauge structural components, purlins and framing systems under the brands of Asteel and Astar. The group operates nine factories, five Asteel building stores and two business outlets nationwide, indicating a significant operational footprint across Malaysia.
According to Hii, the group has come up with a ‘very bold and robust’ recovery plan, and its team is all set to execute the turnaround plan to bring the group back to profits with sustainable growth for business continuity.
“Moving forward, more focus shall be on the group’s core business which is the manufacturing of metal roofing and roll forming products. This would be strengthened by adding value to the products through other complimentary business activities associated with the construction industry.
“Another step taken is to consolidate some business activities under the group with the aim of increasing operational efficiency and cost effectiveness. Such improvements would enhance customer experience and value-for-money products and services for the customers, thereby boosting revenue stream,” he added in the company’s 2023 annual report.
Hii said the group strives to achieve “Affordable Shelter for Everyone” by focusing on affordable housing development in the country with its Green IBS System (AGIBS).
This system, along with the group as a manufacturer of metal roofing and roll forming products would provide Asteel with the competitive advantage in offering quality and affordable homes to young families, the B40 and M40 segments of the Malaysian population, he added.
“Other measures taken to bring Asteel back on track is the implementation of “Lean IR4” where lean management is supported by automation and digitalisation to optimise utilisation of machines, raw materials and manpower to improve productivity and efficiency.
“This will be further backed by upskilling and reskilling of our workforce and intake of technical graduates into the group.”
Reviewing Asteel Group’s performance in financial year ended Dec 31, 2023 (FY2023), Hii said it had been a challenging year as the group posted widened pre-tax loss of RM7.59 million (FY2022: -RM4.58 million) as revenue fell to RM253.3 million (RM276.7 million).
He attributed the group’s weak performance to the fluctuating steel prices, slow implementation of construction projects and the general weak market.
