Thai Steel Industry to Propose Integrated Steel Plan

Thailand Board of Investment (BOI)’s Atchaka Sibunruang told on Monday to reporters of media including Japan Metal Bulletin in Bangkok Iron and Steel Institute of Thailand already finished feasibility study and made master plan for pending integrated steel project to propose it to the cabinet. She failed to disclose the detail but indicated the plan includes more than 2 candidate sites in Thailand and neighbor countries. The pending plan could take more time when some opposing views are occurred in government due to impact on environment and tourism industry.

Iron and Steel Institute of Thailand conducted the study for the project in Chanthaburi province, where many companies have plants for automobile industry, and Songkhla province, where development is needed, to make the master plan. However, such major project could be difficult in southeast area after environmental issue resulted in temporarily stop all projects in Map Ta Phut. The project could be also hard in southern area due to long distance form the steel consuming areas. Local communities’ approval is key for the project in Thailand.

Thai government is still mixed when some oppose to the project due to potential impacts on tourism industry. Iron and Steel Institute of Thailand apparently studies possibility for the project in neighbor countries and already discussed with the countries.

Thai government launched the integrated steel project in 2007. Nippon Steel, JFE Steel, Arcelor Mittal and Baosteel Group showed the willingness to join the project. Japanese major steel makers have advantage due to many local transplants of Japanese manufacturers.