Tata Steel Thailand to Focus on Domestic Market
Bangkok Post reported that Thailand government’s infrastructure investments and a Thai-Chinese high-speed train project, which will fuel domestic demand
Bangkok Post reported that Thailand government’s infrastructure investments and a Thai-Chinese high-speed train project, which will fuel domestic demand for steel, is causing Tata Steel Thailand to shift its focus towards local market sales rather than export. Tata Steel Thailand chief executive Mr Rajiv Mangal said "Last year, steel consumption in Thailand reached 16.48 million tonnes and this year we are seeing positive signs that will drive steel demand. The company expects state infrastructure projects to cause steel consumption to grow up to 18-18.5 million tonnes in 2021.”
Mr Mangal added “The switch to local markets is partially due to uncertainties in export markets due to pandemic restrictions. The overseas demand too has dropped significantly during the past several months.”
Tata Steel Thailand has no immediate plan to boost its steel production capacity from 1.7 million tonnes per year but plans to spend a budget of around 250-300 million baht during April 2021-March 2022 to improve steel quality and increase production efficiency. In fiscal year 2022, Tata steel expects to sell over 1.3 million tonnes of steel.
Its total revenue in April 2020-March 2021 increased by 9.4% to 22.01 billion baht year-on-year. The steel sales volume increased by 8.49% year-on-year to 1.30 million tonnes.