C. Steinweg Launches Integrated Commodities Hub and Malaysia’s First European-Standard Chemical Warehouse In Port Klang

                                                            

HOLD RELEASE UNTIL 3 MAY 2019: PORT KLANG, Malaysia, May 3, 2019 – C. Steinweg Logistics (Malaysia) Sdn. Bhd., a fully owned subsidiary of C. Steinweg Warehousing (F.E.) Pte Ltd and a member of C. Steinweg Group, today announced the Grand Opening of its Port Klang Natural Resources & Commodities Hub. Port Klang will be Steinweg’s second owned-and-operated London Metal Exchange (LME) Delivery Point in Malaysia, after Johor Port Terminal 2, and the country’s first European-Standard Chemical Warehouse in the Klang valley.

On the LME, the world's premier non-ferrous metals market which handles more than 80% of the base metals transacted globally, C. Steinweg is a leading player, running close to 200 warehouses in 17 regional hubs. Known as the industry pioneer, Steinweg has a track record of being the first operator in many important trading hubs around the world.

In Malaysia, C. Steinweg was one of the first LME operators to operate in Johor Port Terminal 1 (since 2004) and Port Klang Free Zone (since 2009). In November 2018, Steinweg was again the first LME operator to list its own built-and-operated warehouse in Johor Port Terminal 2.

“Today’s opening of C. Steinweg’s Natural Resources & Commodities Hub in Port Klang will further cement our leading advantage as an LME warehouse operator. While metals and minerals form a key part of our business, agricultural soft commodities is another big pillar especially for our Southeast Asia markets,” said Mr Ulf Boll, Global CEO, C. Steinweg Group. “We are also growing a name in handling packed hazardous and non-hazardous chemicals following the highest industry standards.”

“Our chemical footprints have expanded from Rotterdam to China, South Korea, Middle East, South Africa, Turkey and other European countries in the past decades; now our goal is to meet the strong growth in chemical logistics needs in Asia-Pacific region, namely Malaysia, Vietnam and other ASEAN countries”, added Mr Boll.

Widely expected to be the first-of-its-kind in Port Klang, Steinweg’s Natural Resources & Commodities Hub will tap into rising demand for safe, efficient and internationally compliant chemical warehouse in the fast growing Port Klang area. Besides warehousing and distribution, customers can also look forward to the convenience of one-stop value-add services such as repacking of chemicals and plastics, enabling them to maximise and localise their supply chain to serve regional markets via Malaysia. Many of Steinweg Group’s existing customers have warmly welcomed the move.

In acknowledging this high value-added investment, Mr. Arham Abdul Rahman, Deputy Chief Executive Officer I of Malaysian Investment Development Authority (MIDA) said, “The expansion by Steinweg Group speaks volumes about the existing strengths and future potential of Malaysia from a market demand perspective and the ease of doing business. We have worked with Steinweg since 2014 to bring this project forward, from feasibility study stage to execution. We are pleased that those engagements have now come to fruition. Steinweg has made Malaysia as its strategic base for chemical logistics hub in ASEAN. We are pleased that the company has found many young talents to work in both their facilities in Johor and Port Klang. Malaysian employees will benefit from the comprehensive training programmes provided by Steinweg where they will be trained and coached by the company’s Centres of Excellence in Rotterdam, Singapore and Shanghai. These will enhance the capabilities of our local talents to compete at the global level.”

“It is an exciting news that Steinweg has opened a new facility in Malaysia. In China, BASF has cooperated with Steinweg for many years. Safety and compliance are our top priorities and we look forward to building our relationship further to provide better services to our customers,” said Mr Jeff Xu, Regional Category Buyer, Logistics Procurement Asia Pacific, BASF.

“Steinweg has been an important supplier for Eastman Chemical Company in the Netherlands for over 40 years, and more recently in Dubai, South Africa, China, and Korea,” said Derek Teo, Manager, Asia Pacific Logistics, Eastman Chemical Company. “Eastman values their collaboration as we focus on delivering a superior experience for our customers.”

Steinweg’s Initial Investment Amount in Port Klang Free Zone is estimated at RM 168 mil for Phase 1 to develop an area of 610,000 sqft in which covered warehouse building of 270,000 sqft, generating up to 70 direct and indirect jobs. The Company expects Phase 2 of remaining 538,000 sf to be developed soon given the positive feedback from the market.

About C. Steinweg

C. Steinweg is one of the world’s leading warehousing and logistics service providers, with a long heritage of expertise in the commodity trade from our founding in 1847. In the last 172 years, our company has grown from its origins in Rotterdam to a vast network of 110 offices across the world.

A major expansion phase began in the 1960s when C. Steinweg made inroads into other parts of Western Europe, followed by Asia and the Americas (1980s), then the Middle East, Africa, Eastern Europe and Russia/Baltic region (1990s onwards). We are now a truly multinational company with close to 7 Million m² of space and 20 km length of quay, handling over 25 million metric tons of various commodities annually.