GEORGE TOWN: Southern Steel Bhd will invest about RM45mil this year to upgrade its plant in Prai Industrial Estate as part of its corporate social responsibility programme, said group chief operating officer Chow Chong Long.

The allocation will be used to upgrade five recyled water treatment facilities, install new scrap cleaning machines and replace the existing dust collection system, according to Chow.

“The scrap cleaning machine removes dust from ferrous scrap, ensuring that only ferrous scraps are used in the production process,” he told reporters at the launch of the company's Energy, Environment, Health & Safety 2010 project at the Prai Industrial Estate.

“The dust collection system captures the fumes emitted from the production process.

“Both systems help the group to save energy and achieve effieciency during the production process.

“When there is less pollution around the production area, the workers will also take less sick leave, which helps to increase productivity,” he said.

Southern Steel uses scrap metal as raw materials, so that steel waste can be recycled and converted into high value finished steel products.

Chow said for 2010, the group would increase its annual production output to about 80% of its present maximum capacity of about 1.5 million tonnes.

The price of steel bars has stabilised at RM2,500 per tonne, about RM150 more compared to the period around Chinese New Year, he said.

Sourced from www.thestar.com