SIR2035 Charts Clear Path Towards Steel Industry Stabilisation, Transformation - Unitrade

KUALA LUMPUR, Oct 1 (Bernama) -- The Malaysia Steel Industry Roadmap 2035 (SIR2035) charts a clear path towards stabilisation, transformation and full decarbonisation of the nation’s steel industry, said Unitrade Industries Bhd. 

Group managing director Nomis Sim Siang Leng said Unitrade welcomes the roadmap’s policy directions on accelerating carbon pricing and transparency frameworks, which would promote greater use of green steel and complement the role of metal recycling in reducing emissions.

“As one of the leading players in Malaysia’s building materials sector, where we distribute a wide range of steel-based products, we have always believed that sustainability must go hand in hand with industry growth.

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“That is why we made a strategic move upstream into metal recycling in January 2024, which now anchors our green business portfolio,” he said in a statement. 

In the financial year 2025, Sim said its green businesses, led by metal recycling, contributed close to 50 per cent of the group’s revenue, underscoring its commitment to sustainable growth.

The SIR2035 Roadmap, launched by the Ministry of Investment, Trade, and Industry, underscores the urgency of the transition, noting that demand for green steel is projected to grow 2.5 times over the next five years, potentially accounting for over 40 per cent of total steel purchases by 2030. 

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From a wholesaler’s standpoint, Unitrade also welcomes the roadmap’s measures to address industry challenges of structural imbalances and overcapacity. 

By managing upstream overcapacity through licensing reform, it said the government is setting the stage for a more disciplined and future-ready industry.

Equally significant is the “Buy Made-in-Malaysia, Buy Low-Emissions” initiative, which prioritises low-emission steel in public procurement and is expected to strengthen demand for sustainable local products. 

“This aligns closely with Unitrade’s long-standing philosophy of sourcing locally. We remain committed to supporting local supply, even if it means foregoing higher margins from imported products, with 85 per cent of the group’s procurement coming from Malaysian suppliers.

“The government’s move to prohibit new Blast Furnace-Basic Oxygen Furnace (BF-BOF) licences also resonates strongly with Unitrade’s stance to discontinue sales of BF-BOF-produced steel bars and wire rods, reflecting a shared commitment to phasing out high-emission production methods,” it said. 

-- BERNAMA