Sahaviriya Steel to expand its strip mill capacity
Thailand's hot-rolled steel maker Sahaviriya Steel Industries Plc plans to invest Baht 3.6 billion ($87.4million) to expand its annual hot strip mill
production from 2.4 million tons to 4 million tons to meet the growing domestic demand for hot rolled coil.
According to officials of the plant, demand for hot rolled steel, which is the raw material for producing cold rolled steel that is used in other industry fields such as cars or electrical products, is expected to reach up to 6.3 million tons in 2003.
Previously,
Thailand Commerce Ministry implemented anti-dumping duties of more than 30% on steel imports from fourteen countries to protect domestic producers and subsequently, it agreed to remove the anti-dumping duties, on the condition that domestic manufacturers be able to produce steel products as substitutions for imports over the next five years.
Under the expansion project, Sahaviriya Steel also plans to expand its product coverage from the current thickness of 1.2mm-13mm to 1.1mm-19mm coils, with a higher volume and proportion of high-priced thin gauge coil.
The plant also plans to secure a new credit facility worth Baht 9 billion($218.5 million) from banks and financial institutions in long terms loans and a trade financing facility worth Baht 17 billion($412.8 million) as well as to issue debentures totalling up to Baht 6 billion to refinance its debts.