WZ STEEL EYES PLANT IN INDONESIA IF WORKERS FAIL TO GET EXTENSION OF CONTRACT

YOKOHAMA, May 21 (Bernama) -- WZ Steel Bhd may be forced to set up a factory
in Indonesia either this year or next, if its workers failed to get the nod to
continue working here after the end of their five-year contract.

WZ Steel and unit, Weng Zheng Sdn Bhd, are involved in the manufacturing,
processing and trading of cold drawn bright steel products.

Its managing director, Tan Ching Kee, said the workers were highly technical
and it was difficult to get new staff to replace them after the end of their
contract.

"This is the government ruling. It is very tiring to train the workers for
only a period of five years and then start all over again with the new workers,"
he told Bernama.

The company is involved in the technical sector producing products for
high-end sector like automotive.

Tan is here to take part in the Malaysian Automotive Industry Exhibition and
Automotive Engineering Exposition which ended yesterday.

Weng Zheng supply its products to Japanese firms in Indonesia, Thailand,
Singapore and Vietnam and other firms in South Korea, China and Australia.

Tan said Weng Zheng, which has 109 employees in Balakong in Selangor state,
recorded a turnover of RM70 million (US$23.33 million) for the financial year
ended April 30, 2011.

He said the company was ready to train Malaysians if they were interested to
stay for a long period.

The company would also focus on research and development, he said.