Kobelco Millcon to sharply increase its wire rod production next year.
17-12-2018–KobelcoMillcon Steel Company Limited(KMS) disclosed at the event Ministry of Industry visited its plant in Rayong that KMS plans to double its wire rod production next year as it will take advantage on automobile investment expansion in Eastern Economic Corridor (EEC).
Mr. Masataka Shimotsusa, chief executive officer of KMS reveals that the company currently manufactures wire rods, 160,000 tonnes a year, standard grade making up of 70 percent and the premium grade represents about 20-30 percent.
The KMS will increase its production to 350,000 tonnes next year, of this production of premium grade
wire would be increased by 30 percent to 10,000 tonnes a month.The company also plans to expand its production to 4000,000 tonnes by 2020.
KMS is a 50/50 joint venture between Millcon Steel Public Company Limited and Japan-based Kobe Steel, Ltd .
Which is the first direct investment of Kobe Steel in Thailand.
The KMS has supplied wire rods to automobiles and auto parts industry as raw materials for car tyres, automobile engine, spring, nuts and bolts and suspension system.
“The company currently mainly produces standard grade wire. The production of premium grade wire rod is about 3,000 tonnes a month, as the company wants to venture into new market segment and it is welcome by the market. The company is ready to expand the production of premium grade wire rods to meet a rising demand in both domestic and overseas markets especially, Indonesia, Malaysia, Vietnam.
And the company also is looking for exporting its product to China,” said Shimotsusa.
He is optimistic about the market as it is only manufacturer of wire rods in Thailand. The company has pricing advantage as our product prices are cheaper than imported ones, he said. Moreover, the company
has received tax incentives from the Board of Investment of Thailand.
The company also benefits from the investment booming in Eastern Economic Corridor since many automobile manufacturers expand their production capacity in EEC.
KMS is a joint venture between Millcon Steel Public Company Limited and Japan-based Kobe Steel, Ltd .
Millcon has specialized in high quality steel production and taken into account environment- friendly production.
Kobe Steel, Ltd. is one of Japan’s leading steelmakers,as well as a major supplier of aluminum and copper products. Other business segments consist of wholesale power supply, machinery, construction machinery, real estate, and electronic materials and other businesses.
The KMS has registered capital of Bt 2.83 billion and investment worth Bt 6.79 billion. It has started production of wire rods since 2016 and premium grade wire rods in February this year .
According to KMS Co-CEO, Mr.Theerayuth Lertsirarungsun disclosed that KMS target to sell about 9,000 tonnes Steel Belt (Tyr Cord) and Bread Wire for strengthen rubber tyre and about 15,000-18,000 tonnes of nut and bolt within the year 2020.
He disclosed that this year KMS target to have over 3 million Baht revenue and set the goal to gain over 7 billion baht and 8 billion baht revenue in 2019 and 2020 respectively.
Minister Uttama urge KMS to be an important strength to co-develop community with local administrative together with developing business, that will be mutual benefit for both Thai and Japan as what Thai government had made agreement with METI minister to be cooperating in pushing industry development together.
