Sumitomo Metals Joins Thai Steel Plate Mill Project

Sumitomo Metal Industries announced on Wednesday the firm decided to join Thai new steel plate mill project by Canadoil Group of Thailand, which is one of world top steel pipe joint makers. Sumitomo Metals purchased around 20% share in holding company of Canadoil Group for US$ 50 million while Sumitomo Metals provides technical support to the plate project. The firm secures annual 300,000 tonnes of plate making capacity through the first offshore investment in plate business while the firm has sheet businesses in India and Vietnam.

Canadoil Group constructs new plate mill with annual 1.2 million tonnes of output capacity in Amata City Industrial Estate in Rayong, Thailand for US$ 600 million. The firm starts the construction work on November 19 launching the mill in 2013 to make plate with max 4,800 millimeters width and 200 mm thick. With support by Sumitomo Metals, the new plate mill with accelerated cooling system will make high valued plate including high tensile steel plate. Sumitomo Metals provides slab at 300,000 tonnes in products from Kashima works.

With the investment, Sumitomo Metals, which has only plate mill in Kashima works, has additional plate making capacity to meet growing demand for energy and shipbuilding worldwide. The firm will make premium plate at Kashima’s mill with annual 2 million tonnes of output capacity while the firm utilizes the new capacity to serve growing demand for energy, marine structures and shipbuilding in Southeast Asia and Middle and Near East.

Canadoil Group has 10 plants in the world to make pipe joint while the firm also makes large diameter steel pipe and pressure vessel. The annual sales were around US$ 520 million in 2009. The firm decided to build the new plate mill to secure the mother plate for the products. The firm has long term relationship with Sumitomo Metals since 1970s.