Japanese steel giant Nippon Steel Corporation has been working on rebuilding the business foundations of two of its consolidated subsidiaries, G Steel Public Company Limited and GJ Steel Public Company Limited, both based in Thailand.
Both plants are described as integrated steel mills producing hot-rolled steel products using electric arc furnaces. process in
Nippon claims that, since March 2022, its own employees have been employed in sales, maintenance, corporate planning and finance roles within both G Steel Public Company Limited and GJ Steel Public Company Limited. Currently there are 23 Nippon personnel working in the Thai plants.
Nippon has also announced major investment in both Thai businesses totalling around 6 billion yen (US$40 million). The money will fund projects designed to strengthen both quality capabilities and cost competitiveness.
According to Nippon Steel, Thailand is one of the most important strategic markets for its overseas business. Since the establishment of production bases there in 1963, Nippon Steel currently operates 30 group companies, directly and indirectly, employing approximately 8,000 people.
Thailand, says Nippon Steel, is a promising market with high steel consumption for manufacturing and infrastructure industries, and further growth is expected in the future.
Considering the future growth potential of the Thai market, G/GJ Steel have decided on a large-scale capital investment. G Steel will install new skin pass equipment and streamline its scrapyard operation. G/GJ Steel plans to invest in a scrap management system in order to enhance its quality capabilities and cost competitiveness, and build robust profitability upon completion of the capital investment.
Nippon Steel will continue to support the strengthening of both businesses by providing funds for their capital investments through loans to G Steel from its Thai subsidiary, NIPPON STEEL (THAILAND) CO., LTD.
G/GJ Steel, says Nippon Steel, are the only integrated steel mills in Thailand producing hot-rolled steel products and have been providing a stable supply of quality and cost competitive materials with short lead times mainly to satisfy steel pipe and construction demand in Thailand.
In addition to exports to Europe and neighbouring ASEAN countries, G/GJ Steel are currently expanding their business fields through sales of high-strength steel for structural and re-rolling usage in the construction industry (as substrates of cold rolling and galvanizing products).
In terms of business expansion, G/GJ Steel has obtained a certificate of carbon footprint issued by Thai Greenhouse Gas Organization and part of the Ministry of Natural Resources and Environment of Thailand. Both companies are considering applying for environmental-related certifications from other authorities. The production of low carbon and recycled products by G/GJ steel is strongly supported by Nippon Steel as it will strengthen their end-user customers' competitiveness, lead to GDP growth in Thailand and aid the Thai Government's carbon neutrality and circular economy ambitions.
Nippon's investment will include the streamlining of scrapyard operations at G Steel and improving scrap management systems at both companies, not forgetting the upgrading of outdated facilities, which will be 'intensively revamped' over the next three years.