KUALA LUMPUR, Lion Industries Corp Bhd is reportedly considering shutting down its two long steel mills in Banting and Bukit Raja, Klang, operated under its wholly owned unit Amsteel Mills Sdn Bhd, according to industry sources familiar with the matter.
While details remain limited, sources indicate the potential closures could happen as early as the end of this year. The Banting and Klang facilities — which produce steel bars, speciality bars and wire rods for the construction and manufacturing sectors — are key revenue contributors for Lion Industries.
Apart from steel manufacturing, the group is also involved in property development and, through its 74%-owned subsidiary Lion Posim Bhd (KL:LIONPSIM), distributes building materials, sanitary ware, tap fittings, tiles, ironmongery, and lubricants.
In response to queries from The Edge, a company spokesperson said:
“Amsteel is in operation, though the steel industry, domestically and globally, continues to face challenging times. The company remains focused on improving operational efficiency, enforcing strict cost controls, diversifying its product range, and pursuing sustainable growth.”
Financial filings show that Amsteel has recorded losses in four of the past five financial years. In FY2024, it posted a net loss of RM100.82 million on RM1.12 billion in revenue.
The only profitable year during that period was FY2021, when it booked an after-tax profit of RM887.37 million on RM2.13 billion in revenue — a figure likely supported by a RM440.5 million gain from a subsidiary disposal and a RM193.1 million gain from a secured debt settlement.
As of end-December 2024, Amsteel’s total assets stood at RM1.2 billion, with total liabilities of RM1.07 billion. Of this, nearly RM700 million were current liabilities due within 12 months. The company’s share premium and reserves were negative RM550.92 million.
Lion Industries itself has also been struggling. For the six months ended June 2025, it reported a net loss of RM83.4 million on RM657.28 million in revenue, compared with a net loss of RM71.51 million on RM838.51 million a year earlier.
As at end-June 2025, the group had RM102.9 million in cash, short-term loans of RM112.1 million, and long-term borrowings of RM22.42 million, with accumulated losses of RM360.17 million.
In its latest financial statement, the company noted that the operating environment for Malaysia’s steel industry remains challenging, citing persistent overcapacity, stiff competition, and rising operational costs that continue to pressure margins. It added that it would focus on efficiency improvements and cost containment to mitigate the situation.
In recent years, both Lion Industries and Amsteel have been divesting assets. They are currently in the process of selling two parcels of freehold land measuring 19.78 acres and seven acres to Unichamp Mineral Sdn Bhd for RM67.96 million and RM24.07 million, respectively — a related-party transaction.
Lion Industries is 34.59%-owned by Tan Sri William Cheng Heng Jem, who also controls Parkson Holdings Bhd and other ventures in the steel and retail sectors. Shares of Lion Industries ended last Friday unchanged at 19.5 sen, valuing the company at RM132.8 million.
Industry observers say intense competition from Alliance Steel (M) Sdn Bhd, a subsidiary of China’s Guangxi Kunyi Investment Co Ltd, has weighed heavily on local steelmakers. Alliance Steel operates a US$1.4 billion plant spanning 710 acres in the Malaysia-China Kuantan Industrial Park.
In late 2023, four major long steel producers — Ann Joo Resources Bhd, Malaysia Steel Works (KL) Bhd, Southern Steel Bhd (KL:SSTEEL) and Lion Industries — appealed for government assistance, alleging that Alliance Steel had breached its manufacturing licence terms and was dumping certain steel products into the Malaysian market. Alliance Steel’s manufacturing licence requires it to export at least 50% of its production, except for products not produced locally, such as H-beams.
