Sahaviriya of Thai Doubles Plate Capacity to 1.5MT in 2010

Sahaviriya Steel Industries, Thai largest steel maker, plans to double steel plate production capacity carrying out new capital expenditure in 2009. The firm aims to expand output of high grade plate for shipbuilding and pipelines. The construction of additional facilities will start in mid 2009 and complete in mid 2010.

Sahaviriya group currently has steel plate output capacity at approximately 700,000 tonnes per year. The group plans to raise the capacity to 1.5 million tonnes per annum and to widen the product sizes to 10 inches of width from 7 inches and 100 millimeters of thickness. The firm will also shift heating furnace energy from heavy oil to natural gas for smaller costs, higher productivity and better environmental responsibility.

Sahaviriya Steel Industries is the largest hot rolled steel product maker in Thailand. The firm imports slabs and mainly produces hot coils with a rolling mill of 4-million-tonne annual output capacity. The firm has increased capex for steel sheet business in recent years, such for expansion of pickling mills and majority acquisition in TCR, a cold rolling mill. In February 2008, Sahaviriya succeeded in development of hot coil with 0.8mm thickness for high grade sheet of automobiles.

The firm has supplied steel plate mainly for constructions and wholesalers so far. The firm now targets higher grade applications. The firm previously planned to expand its plate mill capacity to 3.4 million tonnes per year but the expansion will be realized step by step. Sahaviriya also eyes establishment of integrated steel making process including a blast furnace.