ENVIRONMENTAL
Waste and Effluents
Masteel manages waste in accordance with applicable environmental regulations and adopts a prevention-first approach. Our waste management practices prioritise avoidance, reduction, reuse, recycling, and recovery before disposal, guided by the Reduce, Reuse and Recycle (3Rs) hierarchy and the principles of a circular economy. By retaining materials within the production cycle and reducing dependence on virgin resources, this structured approach minimises waste generation at source, optimises resource utilisation, and lowers environmental impacts across our operations. Within our manufacturing processes, the primary focus is on preventing waste from being directed to disposal through material recovery and reintegration. A key initiative involves the reuse of skull steel, an unavoidable production by-product, which is systematically reintroduced into the steelmaking process as a secondary raw material. By diverting this material from disposal and returning it to production, Masteel reduces the consumption of virgin raw materials while lowering the volume of operational waste generated.
As part of Masteel culture, we continuously monitors and manages operational waste streams to maximise waste diverted from disposal, including recycling and internal reuse wherever technically feasible. Only residual materials that cannot be recovered are managed through authorised waste contractors in accordance with regulatory requirements. Our objective is to progressively reduce waste directed to landfill whilemaintaining safe and compliant handling of all materials. In addition to industrial waste, Masteel manages non-hazardous office waste through resource efficiency initiatives. The Printing Policy, implemented in 2022, supports waste prevention by reducing paper consumption through digital documentation, double-sided printing, reuse of paper, and controlled use of printing supplies. It also emphasises optimising toner and envelope utilisation to reduce excess consumption and reinforcing employee awareness and accountability in responsible paper use.
These measures contribute to reducing solid waste generation at administrative facilities and support responsible consumption practices among employees. Employee awareness programmes reinforce proper waste segregation, responsible material handling, and recycling practices across the organisation. Through operational controls, monitoring, and continuous improvement, Masteel seeks to minimise environmental impacts associated with waste generation and promote circular resource use. By prioritising waste prevention, increasing diversion from disposal, and ensuring compliant treatment of residual waste, Masteel continues to strengthen its environmental performance, preserve natural resources and advance sustainable resource management within the steel manufacturing industry.
In FY2025, we further reduced our overall paper usage to 1,460 reams, representing a decrease of 76 reams compared to FY2024, when consumption stood at 1,536 reams. This follows the earlier reduction achieved in FY2024, where usage declined by 84 reams from FY2023’s 1,620 reams, demonstrating a sustained downward trend in paper consumption over the three-year period. Overall, paper usage has decreased by 160 reams (approximately 9.9%) from FY2023 to FY2025, reflecting the effectiveness of our resource efficiency initiatives and workplace awareness programmes. Notably, in FY2025 we continued to achieve our reduction target of 5%, reinforcing our commitment to continuous improvement in responsible resource management.
The continued reduction aligns with Masteel’s commitment to minimising operational waste while enhancing efficiency and supporting broader sustainability objectives. The consistent year-on-year improvement indicates that measures such as digital documentation, controlled printing practices, and employee accountability are becoming embedded into daily operations, demonstrating that environmental stewardship can be integrated into business practices without compromising productivity.
Looking ahead, Masteel will continue strengthening digitalisation and automation in documentation processes to further reduce paper dependency and sustain our reduction trajectory while reinforcing a culture of responsible consumption across the organisation. For coming years, Masteel has set a paper consumption reduction target of 3% from the FY2025 baseline, supporting ongoing improvements in resource efficiency and operational effectiveness
As part of our commitment to sustainable steel manufacturing, Masteel implements a structured waste management framework grounded in regulatory compliance, environmental responsibility, and circular economy principles. We prioritise waste prevention, material recovery, and resource reintegration to retain value within our production cycle and minimise waste directed to disposal. All scheduled waste is managed in strict accordance with Department of Environment (“DOE”) requirements, and we engage only licensed contractors to ensure safe, compliant handling and disposal. In line with regulatory obligations, scheduled waste is disposed of within the prescribed six-month period and maintained below the 25 metric tonnes storage threshold at any given time.
This disciplined and circular approach supports responsible resource use while strengthening our environmental performance. During FY2023–FY2025, Masteel recorded fluctuations in scheduled waste generation primarily due to operational activities and improvement projects. SW104 (fume dust) remained the dominant hazardous waste stream, and recorded a declining to 4,472.97 tonnes in FY2025 as compared to 4,981.00 tonnes in FY2024, indicates strong waste management principles within the operation sites
Other scheduled wastes recorded relatively smaller volumes and varied mainly due to maintenance and operational activities. SW409 (disposed containers) decreased from 3.43 tonnes in FY2024 to 2.89 tonnes in FY2025, while SW410 (contaminated rags) increased to 1.33 tonnes in FY2025 from 0.40 tonnes in FY2024, reflecting maintenance and cleaning activities associated with plant operations. SW306 (spent hydraulic oil) rose slightly from 13.13 tonnes in FY2024 to 13.60 tonnes in FY2025, and SW305 (spent engine oil) increased from 2.54 tonnes to 13.87 tonnes, corresponding to equipment servicing cycles. Meanwhile, SW421 (mixed waste) remained at zero generation in FY2025, demonstrating the continued effectiveness of improved waste segregation and operational controls implemented since FY2024.
Overall hazardous waste generation decreased from 5,000.50 tonnes in FY2024 to 4,504.66 tonnes in FY2025, representing a reduction of approximately 9.92%. The higher volume in FY2024 was primarily influenced by increased fume dust generation during operational adjustments and evaluation of recycling potential, while the reduction in FY2025 indicates improved process stability and enhanced waste management efficiency. These changes reflect operational optimisation rather than any decline in environmental performance.
Beyond regulatory compliance, Masteel continues to prioritise waste minimisation and circular resource use. Recyclable materials are recovered wherever feasible, and nonrecoverable wastes are disposed of responsibly at approved facilities. Non-scheduled waste is also managed through certified contractors and disposed of at licensed landfill sites. Through continuous monitoring, process optimisation, and recovery initiatives, Masteel aims to progressively increase waste diversion and reduce environmental impact.
Moving forward, we will continue exploring recycling technologies, material recovery opportunities, and operational improvements to strengthen resource efficiency and support our long-term sustainability commitment
Masteel implements recycling and recovery practices to ensure industrial by-products, including skull steel and scheduled waste, are safely managed and reintegrated into operations where feasible. Guided by circular economy principles, these measures reduce waste to disposal including non-recycled waste, optimise resource utilisation, and support compliance with environmental regulatory requirements. As part of our environmental governance framework, we maintain an internal benchmark limiting regulatory penalties related to waste management to a maximum of two cases per financial year.
In FY2025, no penalties were recorded, reflecting the effectiveness of our compliance controls and strict adherence to environmental regulations. This achievement demonstrates our proactive approach to environmental stewardship and commitment to maintaining high operational standards. Since 2022, our Petaling Jaya plant has been certified to ISO 14001 Environmental Management System standards, covering approximately 50% of our operations. This certification supports continuous improvement in environmental performance, strengthens resource management practices, and reinforces our long-term commitment to sustainable operations and environmental protection.