Mycron Steel Bhd has inked a memorandum of understanding (MoU) with Japanese steel producer JFE Steel Corporation to drive the adoption of green steel solutions in Malaysia. Mycron Steel group chief executive officer Roshan Mahendran Abdullah said the MoU marks the company's journey into a new green steel revolution. 'We are at the beginning of this journey. Currently, it will only form a small percentage of our overall production, but we are confident that over the next five years, the demand for green steel will grow by two and a half times from what it is now. 'By 2030, green steel can account for up to 25 per cent of the total global steel volume,' he told reporters after the MoU signing ceremony here today. As part of this initiative, Roshan Mahendran said Mycron plans to launch its own patented green steel products, using a similar mass-balance approach, by next year. These patented green steel products are designed for industries with higher-end applications, where end-users are willing to pay a premium to reduce their carbon footprint. In a separate statement, Mycron Steel said it will integrate JFE Steel's JGreeXTM green steel into its production process. The JGreeXTM green steel employs a mass-balance approach to significantly reduce carbon dioxide (CO2) emissions across the entire steel production chain, allocating these emission reductions to specific products. This mass-balance method adheres to the Japan Iron and Steel Federation's guidelines, ensuring that the environmental benefits are accurately calculated and verified by the independent organisation ClassNK. Mycron added that the MoU will also focus on developing the green steel market in Malaysia and exploring further advancements in sustainable steel production. Commenting on the steel industry, which has been subdued by low demand for steel in China, Roshan Mahendran said that an influx of Chinese steel has been flooding the global market. 'It has definitely affected global sentiment, not only in Malaysia, and dampened steel deman d. When there is excess supply, customers tend to be more cautious when purchasing. 'So, we are engaging closely with the government, especially the Ministry of Investment, Trade, and Industry. I believe we have been managing the surplus of steel from China,' he said. Source: BERNAMA News Agency