China's state-owned steel maker Shougang Group launched a project on December 5 to build a 1.8 billion ringgit ($574.25 million) integrated steel mill in Malaysia through a joint venture with Hiap Teck Venture Berhad, one of Malaysia's largest steel pipe makers.

The steel slab plant would be built on 1,200 acres in Kemaman, an industrial city in the country's east coast economic development region that has moderate iron ore reserves.

The project, called "Eastern Steel," is the largest Chinese foreign direct investment in Malaysia. The steel plant is estimated to produce 1.5 million tons of steel slabs annually. Operations at the plant are expected to start in mid-2013.