Bangkok Post reported that TATA Steel (Thailand) Plc, majority owned by the Indian giant TATA, has been in talks to unload its mini blast furnace and find a strategic partner for its NTS Steel Group as it tries to return to profitability after three years of losses.

Mr Peeyush Gupta president & CEO of TATA Steel (Thailand) Plc said that two separate options have been pursued in the last three months. The MBF complex, which also includes power and sinter plants, is potentially to be sold to partners who have access to raw materials such as those in India, Africa and the Middle East.

With a total investment of THB 3.8 billion, TSTH operated the MBF from October 2009 to July 2011. The facility, with an annual capacity of 500,000 tonnes, shut down because of high raw material costs, leading to a depreciation cost of THB 230 million a year.

Mr Gupta said that a strategic partner is needed for NTS to increase utilization from 60% to 65% now to over 95% by adding a better variety of products. NTS, which is in the same location as the MBF in Chon Buri, has a total capacity of 800,000 tonnes.

Potential partners for NTS are regular exporters to Thailand from India, Japan and Korea, as well as trading firms who have a continuous presence in Thailand.

TSTH posted a net loss of THB 201 million in the three months to June 2012, its first quarter for fiscal 2013, against a net profit of THB 2 million in the same period of 2012 and a loss of THB 240 million in the previous quarter.

Net sales fell by 22% YoY and 9% QoQ to THB 5.83 billion due to a production shutdown at subsidiary Siam Construction Steel Co and rising imports from China. SCSC halted operations after a May blast at its BST Elastomer complex in Rayong.

Source - Bangkok Post

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