October 13, 2008

Siam Tinplate to add a new line to increase capacity

Sumitomo Corporation, Metal One Corporation and Nippon Steel Corporation have come to an agreement to build up the capacity of Thailand based Siam Tinplate Co Ltd located at Map Ta Phut Industrial Estate of Rayong.

The capital investment is approximately THB 1,400 million to increase its productive capacity to approximately 260,000 tonnes per year form both existing line and new line, scheduled to start commercial operations by July 2009.

The Japanese shareholders in Siam Tinplate account for 71.% controlling stake with Sumitomo having 28.2%, Metal One 18.4%, Nippon Steel 15.6%, Nittetsu Shoji 7.0%, Tomiyasu 2.2% and the Thai side holds 28.5% stake.

In Thailand, under the government initiated slogan, “Kitchen of the World,” industrial concentration as a major stronghold of food can exports has been progressing, with the accompanying growth in tinplate demand now touching the 600,000 tonnes level, the highest of all ASEAN countries. Siam Tinplate, since commencing operations in 1992, has steadily responded to the domestic demand for tinplate in this growing economy. However, now that Thai can makers are showing a strong willingness to make capital investment in the shape of expanded capacity, particularly to increase the production of cans for fish, fruit, vegetables and other foods.