Malaysia's steel industry is starting the year by adding new capacity and expanding existing steel mill complexes as Chinese companies funnel foreign direct investment into the country as it starts to recover from China's previous influx of steel surplus. China has invested in billion-dollar integrated steel mill complexes in Kuantan, Kemaman, and Samalaju as it targets to exploit Malaysia's geographical location and cheaper workforce and power to create steel. Two major expansions in Alliance Steel and in Eastern Steel are poised to start within the next two years, while the Samalaju Integrated Steel Mill complex is preparing to break ground by mid-year.