Taking More Time for Thai Integrated Steel Project for Offshore Steels

Secretary General Atchaka Sibunruang of Thailand Board of Investment said on Monday to a reporter of Japan Metal Bulletin in Bangkok Thai government led the integrated steel works project will be delayed due to Map Ta Phut issue, which represents the court’s suspension of capital expenditure in Southeast of Thailand under environmental regulation. Nippon Steel and other major steel makers showed the intention for the investment but they have to wait more for a research by Iron and Steel Institute of Thailand (ISIT).

Thai government announced the integrated steel project in November 2007 and sounded major steels’ interests. Nippon Steel, JFE Steel, Baosteel Group and Arcelor Mittal responded to the offer. The project was delayed due to worldwide financial crisis but ISIT started the research for the site and the facility last year.

Thai court stopped 76 industrial projects at Map Ta Phut port of Rayong last year citing violation of article 67 of Thai constitution. Eleven projects of them were allowed the restart in December but Japanese companies are concerned that the environmental regulation could be a hurdle for their investment despite of invitation from the industrial park.

The integrated steel project is included in major 8 projects under the new law, which requires a severe environmental guideline and a severe assessment for health. Thai government tries to shorten the assessment period but the integrated steel project could take longer time for negotiation with local community and other hurdles. ISIT expects the selection of the candidate sites could take 6-8 months.

Secretary General Atchaka didn’t refer to when the government decides the project but she said Japanese integrated steel makers are promising candidate when many Japanese companies have transplants of automobile and electronics industries in Thailand. She indicated Thailand hopes Japanese steel makers’ investment for the steel project.