BlueScope Steel to install coating line in Thailand

BlueScope Steel to install coating line in Thailand

According to recent news in the market, Australian steel producer BlueScope Steel plans to install a second metallic coating line at Map Ta Phut plant of the company in Thailand. The investment, which will cost A$80 million will be effected by BlueScope Steel's Thailand division. With this installation, the capacity of Map Ta Phut plant will increase by 200'000 tons to 375'000 tons. Apart from metallic coated products, the plant will also produce aluminium-zinc alloy coated and zinc-coated products. The construction of the line is scheduled to start in January 2004 and the line is expected to be completed by mid 2005. The installation of the second metallic coated line is considered to be necessary, in line with the increase in demand from construction and manufacturing markets in Thailand together with the improvement of the economy of the country. An official from BlueScope Steel stated that the investment is a part of company's plan of expanding its downstream value-added steel product business in Asia. Moreover, it is stated that through the Free Trade Agreement between Australia and Thailand, negotiations of which have been recently completed, Australian investments in Thailand will pick up speed. Meanwhile, outlook of BlueScope Steel, largest steel company in Australia and New Zealand is revised as BBB+ by international credit rating institution Fitch, located in London. The rating is stated to be reflecting company's conservative capital structure and strong market position.