New ASEAN Steel Manufacturing Facility

There are many new investments coming from China. One of the main reasons is the reform of the Chinese government's proposal. One of the areas of the supply reform initiative was to optimize iron and steel capacity, force the shutdown of inefficient facilities and consolidate state-owned enterprises, which will boost the industry's profitability amid a slowing Chinese economy. As a result, China's steel mills will have to look elsewhere to continue manufacturing, expand and export to other countries, and even ship products back to China.

ASEAN, where the steel market is growing rapidly, is becoming the main destination for steel investments. In recent years, many investments in steel projects in ASEAN have come from many countries such as Japan, South Korea, Taiwan and, more recently, China. For many, ASEAN is an attractive emerging market that is often viewed as a large economic bloc with a population of around 650 million. There are opportunities to supply products to ASEAN and participate in the development of the region, and sometimes the best way to do this is to invest in the region.

ASEAN now has a lot of Chinese investments in steel. And there is much more on offer in the region. Many Chinese steel companies are unable to develop further in China due to supply reforms, not just after the emergence of an attractive market, so they decided to seize the opportunities in ASEAN. The region's proximity to China, as well as the familiarity of investors with the Chinese market, also make the region an attractive investment destination.