Friday, December 12, 2014

Perwaja Steel Closure Is Inevitable


Published by Free Malaysia Today on 12 December 2014.

The Terengganu government has assured the 1,500 workers of Perwaja Steel Sdn Bhd that their welfare will be cared for although Perwaja will cease operation by year end. Trade and Industry Committee chairman Tengku Putera Tengku Awang said the state government has urged China-based Eastern Steel Sdn Bhd to employ Perwaja workers.

“The state government has negotiated with Eastern Steel who agreed to employ skilled Perwaja workers. However, Eastern Steel did not set a quota for the workers,” he told reporters after winding up debate in the state assembly today.

Established in 1982, Perwaja changed ownership several times and was beset by financial problems, forcing operations to be closed. Eastern Steel is Malaysia’s largest steel plant with investment of RM1.8 billion on a 500-hectare site in Teluk Kalong, Kemaman.

Tengku Putera said the state government via the Workers Coordination Committee was willing to meet with the Perwaja workers involved. “The retrenchment of Perwaja workers was decided one year ago but the first phase only began in early September. The closure is inevitable, although some capital injection and a rescue plan had been implemented,” he added. The state government is also willing to provide assistance to Perwaja workers who want to venture into business.

- BERNAMA

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