Nippon Steel Starts Thai CGL Construction

Nippon Steel announced on Monday the firm held groundbreaking ceremony to build continuous galvanizing line in Thailand on the day. The plant with annual 360,000 tonnes of output capacity will start commercial production in October 2013. The plant is eighth automotive steel making offshore plant in 6 countries and fifth galvanizing plant in 5 countries for the firm. The firm tries to meet growing offshore automobile demand.

Nippon Steel established the plant operating subsidiary, Nippon Steel Galvanizing (Thailand) with US$ 118 million of capital in June 2011. The firm got environmental approval for the construction from Thai authorities in December.

Nippon Steel builds the automotive grade CGL on adjacent land of the cold rolling subsidiary, Siam United Steel in Rayong of Thailand. Nippon Steel establishes integrated local production system from cold rolled flat steel to galvanized steel. The galvanizing plant will get cold rolled flat steel mainly from Siam United Steel while Nippon Steel will export the mother material only with 1,300 millimeters or more width for the plant. The plant will make 980 mega pascal of high tensile steel.