Published on 29/04/2014
BlueScope adds B1bn Rayong plant Potential for coated steel seen as immense
Australia-based NS BlueScope, a metallic coated and pre-painted steel producer, is developing a new production line at its Rayong plant at a cost of 1 billion baht to tap rising local demand. Country president Somkiat Pintatham said the line will produce coated steel to serve the electrical appliance industry where demand has grown by more than 10% over the past five years. "Thailand is a global production base for electrical appliances and each year imports a huge amount of coated steel sheets for manufacturers such as Sharp, Panasonic and Toshiba," he said. Super Dyma is a special technique for coating steel sheets developed by Japan's Nippon Steel & Sumitomo Metal Corporation. In 2012, NS BlueScope formed a joint venture with Nippon Steel & Sumitomo Metal with the goal of penetrating the building material markets in Asean and North America. The new 50:50 joint venture, called NS BlueScope Coated Products, was formed in 2013 as a strong platform to capture expected growth in the building and construction material sector in both Asean and North America, which is valued at US$40 billion per year. With production set to begin at the Map Ta Phut plant next month, Mr Somkiat said the new coated steel sheets boast better resistance to corrosion than zinc. "Thailand has huge room for coated steel sheets to grow because all electrical appliance producers rely on imports," he said. On average, Thailand consumes only 200 kilogrammes of steel per head per year compared with 300 kg in Malaysia and 500 kg in Singapore, he added. NS BlueScope this year aims to penetrate the small and medium-sized enterprise (SME) segment and the residential sector after demand began to slowdown in the industrial and commercial sectors since the end of 2013 due to the political turmoil.
Last year, the company operated Smart Home by BlueScope in Nakhon Ratchasima and expects to open another 18 shops this year. It also invested 20 million baht on a technical centre for coated steel sheets. "We anticipate plants for SMEs and residential projects in provinces bordering neighbouring countries to grow substantially, especially when the Asean Economic Community is fully implemented. Demand for high-quality steel should grow exponentially," said Mr Somkiat. NS BlueScope projects business will grow by at least 10% a year in line with annual growth in the construction industry, he noted.