On April 4, Japan's largest steelmaker Nippon Steel Corporation announced that it will establish a new company in Thailand focused on the manufacture and sale of hot dip galvanized (HDG) and galvannealed steel sheets primarily for automotive use, with the new enterprise due to build a HDG production plant with a total investment of $300 million.
Accordingly, in 2013 the new 360,000 mt per year HDG plant to be built in Rayong Province is expected to commence production of high-grade and high-quality galvanized and galvannealed steel sheets, including automotive outer panels and high-strength steel.
"The Thai steel market is a growing and important market for Nippon Steel, and continued growth is anticipated in the future. Through this new company, Nippon Steel intends to provide steel products appropriately corresponding to customers' needs, including for high-grade automotive steel sheets," reads Nippon Steel's statement.
Thailand's car output is expected to increase to 2-2.5 million units within a few years, up from 1.64 million units in 2010.
Nippon Steel also has steel galvanizing lines in China, US and Brazil through joint ventures with local partners.