Four companies claim that Alliance Steel has violated the terms of its production license and negatively impacted the local market. In addition to these allegations, there is also the uncertainty surrounding Alliance Steel's shareholding decision. The potential change in the company's shares further complicates local market dynamics.
Alliance Steel, which is entirely owned by Guangxi Kunyi Investment Co Ltd, has invested US$1.4 billion (RM6.5 billion) and operates a high-strength steel mill on a 710-acre site in the Malaysia-China Kuantan Industrial Park.
Written to Miti (Ministry of Investment, Trade and Industry), the report requests an assessment of Alliance Steel's compliance with the terms of the license. At the same time, the claimants also want to examine whether local producers are complying with tax incentives.
Miti and the Malaysian Investment Development Authority (Mida) are carefully monitoring these developments in the steel sector. Measures to stabilize the country's steel industry and promote fair competition could determine the future of the sector.
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