Esteel Enterprise Sabah Sdn Bhd

Esteel Enterprise Sabah aims to build a Green Steel Making Facility in SOGIP. It was initiated to develop the whole green steel industry chain, which includes iron ore concentration, palletizing, direct reduced iron (DRI), steel-making, steel rolling, and high-end steel processing.

The plant uses natural gas as a reducing agent instead of coke and coal, which reduces carbon emissions by 70% and is low carbon, efficient, and environmentally friendly. In the future, it will gradually transform to green hydrogen smelting with near zero carbon emissions.

The Green Steel Project is a three-phase project with a total projected investment value of US$4.39 billion (RM19.6 billion).

It is seeking to construct an integrated green steel industry occupying 180.5ha of land for Phase I of the project inside SOGIP, an industrial area for downstream oil & gas in Sipitang district.

1- Phase I of the project will produce 2.5 metric tonnes per year (mtpy) of hot briquetted iron (HBI) and will consist of multiple facilities such as an iron ore concentration plant, palletizing plant, HBI plant, jetty, support facilities, and others. Phase I of the project commences in the fourth quarter of 2023 and is expected to be completed by the fourth quarter of 2025, with an investment value of US$1.29 billion.

2- Upon completion Of Phase I, Phase II and III will have another two sets of DRI, 2.5mtpy each, and will include steel-making, steel rolling, high-end steel processing, waste recycling, and others.

The construction of Phases I and II will be carried out simultaneously, taking about four years.