G Steel of Thailand to Start High Grade Hot Sheet Production with Imported Slabs

G Steel, the largest maker of hot rolled steel sheets in Thailand, plans to start steel sheet production using imported slabs by 2012. G Steel now produces hot rolled steel sheets from ferrous scrap. The firm aims to supply high value added steel sheets such for automobiles by using slabs with higher grade than ferrous scrap. The firm has already introduced some of required facilities, planning to progress the project with financial and technical supports from overseas steel makers. G Steel will increase the high grade steel sheet sales and strengthen the company’s profitability in Thailand, the largest car producing country in Southeast Asia.

G Steel currently produces hot rolled steel sheets at 1.3 million tonnes per year mainly using imported ferrous scrap. The firm acquired Nakornthai Strip Mill (GJ Steel at present), another large maker of hot rolled steel products in Thailand, in 2006. After the acquisition, G Steel Group’s capacity became 6 million tonnes per annum, larger than Sahaviriya Steel Industry’s 4 million tonnes and the top in Thailand.

G Steel’s non-consolidated capacity is 3.4 million tonnes per year, 1.8 million tonnes of which is now operated. The rest 1.6-million-tonne capacity is utilized to roll slabs by additional introduction of heating furnaces and rolling machines.

G Steel’s sales are mostly for construction materials, partially for automobiles, home appliances and domestic cold rolled steel product makers. Mr. Ryuzo Ogino, G Steel’s CEO, explained the firm aims higher steel sheet quality by utilization of imported slabs produced at offshore integrated steel makers as well as expansion and improvement of G Steel’s own facilities and capacities.