Posted on 02 Jun 2021
The Kobelco Millcon Steel Co (KMS) joint venture between Thailand's Millcon Steel and Japan's Kobe Steel plans to increase its supply of premium steel to 12,000 tonnes/month from the current 10,000 t/m. This is to meet growing domestic steel demand driven by the automotive industry.
KMS then aims to increase its production of premium steel to 15,000 t/m within the next 2-3 years in order to supply products to Japanese automakers, Kallanish notes from its public report.
KMS has plants in Rayong and Bangkok with a combined capacity of 400,000 tonnes/year. They supply premium steel and high-quality wire rod steel to car and home appliance industries, as well as new targeted industries under the Eastern Economic Corridor (EEC) scheme. Their current operating rate stands at 270,000 t/y, or around 67% of total capacity, according to company staff.
The Thai automotive industry experienced significant growth in April, with car production increasing by 322% year-on-year to 104,355 units, according to the Federation of Thai Industries (FTI). Domestic car sales in April increased by 93.1% year-on-year to 58,132 units, while car exports increased by 160.16% to 52,880 units.
FTI earlier set a target of 1.5 million car units produced in 2021, an increase of 5.12% from confirmed 1.41 million units of output last year. About 750,000 units of the new cars will be exported.
Source:Kallanish
