Thailand to Accelerate Integrated Steel Project after Election

Thailand Investment of Board’s secretary general Atchaka Sibunruang said on Wednesday Iron and Steel Institute of Thailand will submit master plan of pending integrated steel project to the cabinet on July 3 after the general election. The process apparently delayed due to the election while the master plan was completed in earlier the year. The institute submits the plan to deputy prime minister after the election.

Ms. Atchaka said to a reporter of Japan Metal Bulletin after keynote speech investment seminar held in Kitakyushu, Fukuoka the integrated steel project was suspended temporarily due to the election but BOI and related departments try to realize the project. She said the location is to be decided and should be domestic location when local government in southern Thailand started enticement activity. She also noted the government also eyes potential location in foreign countries.

She said BOI makes effort to realize the project when the board arranged local residents’ visit to Japanese steel works and local community. She said the government tries to develop local community including infrastructure as Japanese eco-town along with steel works.

She said Thai automobile production hit 1.65 million units in 2010, of which export represented more than 50%. She is confident continuous growth for the industry when the government is revising commodity tax to encourage environmental friendly and energy saving products. She said BOI encourages the industry to make eco-friendly car but the discussion continues for the options including electric vehicle. She said the government targets 2 million units of automobile production as early as possible.

She said after the major earthquake in Japan Thai automobile production decreased to 70% level for some makers in April. However, she said the production recovers in May and reaches 100% operation in June. She emphasized BOI tries to meet needs of Japanese companies in Thailand through closed hearing. She said the government accelerated approval for the quake damaged plants to shift the production to Thailand while the government allows the damaged companies extend resident officers’ stay in Thailand.

She emphasized Thai government continues the policy including investment strategy even when the election would result in change in the administration. She said the country needs Japanese integrated steel maker in the country when Thai industry uses massive steel in automobile, electronics and appliances.