Thailand's second-largest hot rolled steelmaker by capacity, G Steel PCL, will this year resume construction of its mini blast furnace in the province of Rayong after a two-year delay.
The Rayong-based project is aiming at a production capacity of 2.5 million metric tons per year. Also, with the completion of this project, G Steel will reduce the volatility of its raw material costs and will expand its hot rolled coil production. The new facility will start production operations at the end of 2009. The estimated value of this project is more than $1 billion.
Commenting on the project, G Steel CEO Somsak Leeswadtrakul announced the signing of a memorandum of understanding regarding technology transfer with South Korean steelmaker Dongbu Steel, and said that G Steel will continue negotiations with four potential strategic partners from India, Japan, Korea, Russia for the development of the project.