Thai government green lights Sahaviriya's smelter plan

Thai government green lights Sahaviriya’s smelter plan

Thai government approved steel producer Sahaviriya Group's plan to build a 30 million-ton steel smelter, sources report. Depending on the market supply and demand and Sahaviriya's commitment to the project, the Thai government will grant tax privileges to the steel producer. In line with the plan, Sahaviriya will conduct the project in five phases over 15 years. The first phase will provide 5 million-ton capacity and will cost THB 90 million ($2.2 million), THB30 million will be funded through company's own capital, while the remaining THB60 million will be borrowed from foreign banks. The first phase, which will start in 2006, is scheduled to be completed by 2008. Having no smelter, Thailand currently meets its slab and billet requirement mostly through imports.