August 29, 2008

G Steel aiming at 5.9 million tonnes capacity by 2009

According to Mr Ryuzo Ogino president of G Steel, it is aiming to increase its annual revenues to THB 100 billion and production capacity to 5.9 million tonnes by 2009. Mr Ogino said that G Steel is currently in the process of consolidating with Nakornthai Strip Mill.

Nakornthai Strip Mill another hot rolled coil producer founded by Mr Sawasdi Horrungruang is due to exit business rehabilitation under the Central Bankruptcy Court by the end of the year. G Steel holds 23% of Nakornthai Strip Mill and plans to increase its holdings to 33% in March, with the consolidation complete in the next one or two years.

Dr Somsak CEO of G Steel said that combined revenues of Nakornthai Strip Mill and G Steel were projected at THB 48 billion this year. He added that within two years, G Steel plans to increase its production capacity to 3.4 million tonnes from 1.8 million now. NSM currently has a capacity of 2.5 million tonnes. Dr Somsak said that ''The increase in production capacity will help boost our competitiveness in the global market and also reduce operating costs as we prepare for market liberalization over the next two years.”