Thai Government Still in Study for Integrated Steel Mill, Industry Minister

Thai Industry Minister Charnchai Chairungrueng said to reporters of Japan Metal Bulletin and other media on Monday Thai government still tries to build integrated steel works in the country to establish upper stream steel operation. He said the ministry researches the candidate sites to select the key location in 6 months. An official of the ministry said Japanese integrated steel makers have advantage to be selected for the project among potential 4 offshore major steel makers when many Japanese manufacturers have transplants in Thailand.

Thai steel demand reached 14 million tonnes in the peak of 2005, which was 40% higher than the level in 2000. Minister Charnchai said domestic steel demand increases when the automobile production reached 1.39 million units in 2008 from 400,000 units in 2000. The government announced integrated steel project in 2007 and Nippon Steel, JFE Steel, Arcelor Mittal and Baosteel Group showed the interest in the project.

The ministry is still in study phase for the project to find environmental impacts on the local community. The ministry is cautious for the site selection when the court stopped some investment at Map Ta Phut, southeast Thailand. The ministry eyes Chumphon are in southern part of Thailand and eastside deep port area for the project.

The ministry hopes Japanese major steel makers build the integrated steel works when Japanese automakers and appliances makers have many transplants in the country. However, the ministry takes more time to select one of Nippon Steel and JFE Steel.