Thai Millcon Steel to Ramp Up Special Automotive Steel Output
Bangkok Post reported that Thai Millcon Steel Public Company Limited and Japanese Kobe Steel’s Joint Venture Kobelco Millcon Steel Co plans to take advantage of the global economic recovery by increasing premium steel production to serve higher demand from the automotive industry. Kobelco Millcon Steel CEO Mr Shinichi Yasuki said “The automotive industry is growing thanks to the global economic recovery and this will increase demand for steel from car companies. Though the pandemic affected demand for steel in early 2020, we saw good signs in the domestic car industry, which has recovered slowly since September last year. Our factory in Rayong has a production capacity of 480,000 tonnes a year, half of which is speciality steel.”
His company plans to increase the production of premium steel, which is used to build car structures, to more than 50% of its capacity in 2-3 years to serve growing demand in the market.
Kobelco Millcon Steel Co expects total car production in Thailand to rise to 1.72 million units this year, up from an earlier forecast of 1.60 million units.
Kobelco Millcon Steel Co also supplies steel products, including high-quality wire rod steel, to the home appliance industry and high-tech industries in the Eastern Economic Corridor. The government wants factories nationwide to upgrade their steel production efficiency to meet international standards and increase the value of steel products as part of the Industry 4.0 scheme, which encourages manufacturers to apply digital technology and data analysis to manufacturing.