HG Metal opens cut-and-bend fabrication plant in Myanmar

STEEL products maker HG Metal Manufacturing has opened a plant in Myanmar that can produce 4,000 tonnes of cut and bend, and prefabricated steel per month.

HG Metal, which first announced the investment in 2018, owns 51.04 per cent of the plant located in the East Dagon Industrial zone of Yangon, with the remaining shares owned by Singapore and Myanmar partners. In all, the three parties invested about US$12 million in plant and machinery at the five-acre site.

HG Metal chief executive Shin Taeyang said that the plant will cater to the rapid demand for structural steel for infrastructure and high rise building projects in the Myanmar capital and beyond, and that demand in Yangon alone is estimated at 60,000 tonnes per month. Before the plant, HG Metal previously performed only sales and distribution in Myanmar while performing cutting, bending and fabrication services in Singapore.

The company has another adjoining site of about three-acres for further expansion in the future that can be used if demand picks up.

HG Metal shares were trading at 26 Singapore cents as at 4.09pm on Wednesday, up 2.0 per cent or half a cent on the day.