Megasteel temporarily ceases operations

Lion Corporation Bhd said its subsidiary, Megasteel Sdn Bhd, has temporarily ceased operations of its Banting plant.

In a filing to Bursa Malaysia, Lion Corporation claimed that the government's decision on imported hot rolled coils had impacted Megasteel’s operations which resulted in staff retrenchment.

Lion Corporation was clarifying an article published in a local newspaper titled, "Megasteel Closes Banting Plant" which quoted industry sources.

"Megasteel has been suffering losses in the past several years due to excessive dumping of steel products by foreign millers and had been operating intermittently depending on market conditions," Lion clarified.

Megasteel is a 79 per cent-owned subsidiary of Lion Corporation while the remaining 21 per cent is owned by Lion Diversified Holdings Bhd.

As at 1.13pm, Lion Corporation was half-a-sen easier at 1.5 sen.