Kobelco Millcon Upbeat on Steel Demand from Thai Automakers
The Bangkok Post reported that Thai Millcon Steel Plc and Japanese Kobe Steel Co joint venture Kobelco Millcon is increasing its supply of premium steel to 12,000 tonnes from 10,000 tonnes a month to meet growing domestic steel demand driven by the automotive industry and aims to increase its production of premium steel to 15,000 tonnes a month within the next two to three years in order to supply products to Japanese automakers.
According to the Federation of Thai Industries, Thai automotive industry experienced significant growth in April with car production increasing by 322% year-on-year to 104,355 units. Domestic car sales increased by 93.1% year-on-year to 58,132 units while car exports increased by 160.16% year-on-year to 52,880 units. FTI earlier set a target of 1.5 million car units produced in 2021, an increase of 5.12% from 1.41 million units last year. However, the FTI's automotive club remains undecided on whether to adjust the production target due to the impact of the global semiconductor shortage and the third wave of the pandemic in Thailand.
The company has factories in Rayong and Bangkok with a total capacity of 400,000 tonnes per year. They supply premium steel and high-quality wire rod steel to car and home appliance industries as well as new targeted industries under the Eastern Economic Corridor scheme.