Today (August 9, 2024) G Steel Public Company Limited (G Steel) has made a decision to invest in a capital project for a total of 3 billion baht over the next 3 years to upgrade its production facility for improving its quality capabilities, cost competitiveness, and revamp outdated facilities.
To finance these projects, G Steel has entered into a long-term loan with Nippon Steel Thailand (NSTH), a 100% subsidiary of Nippon Steel Corporation (NSC), for an amount of 1.6 billion THB.
With this investment, G Steel is committed to turning around the performance of the company and contributing to the growth of the Thai economy and society by supplying quality Hot Rolled Flat products to various steel demands/customers in Thailand.
The domestic steel industry has been essential for Thailand to develop the infrastructure and to build a robust supply chain for the manufacturing industry. It has enabled Thailand to become a manufacturing hub.
Since NSC’s acquisition of a majority stake in G Steel in March 2022, with the technical and management support from NSC, the company has been making progress in improving its capabilities. NSC is the fourth largest steel company in the world with more than 60 years in Thailand and supplies high-quality steel to the manufacturing industry and various needs of Thai society. Currently, NSC operates 30 group companies employing approximately 8,000 people in Thailand, and NSC is committed to growing the Thai business, including G Steel.
G Steel has been working to strengthen production stability, quality capability, and cost competitiveness to enhance customer reliability and ensure long-term sustainable growth. To strengthen these capabilities, G Steel has decided on a capital investment of approximately 3 billion baht over the next three years. The investments will include a) skin pass equipment for improvement of quality and expansion of its product range as well as b) streamline of scrap yard operation and procurement process which will improve the cost competitiveness and reinforce the recycle system and c) revamp the existing equipment to restore production stability and reliability. This will enable G Steel to build a robust profit structure.
As the only integrated domestic producer of HRC in Thailand along with G J Steel Public Company Limited (GJS), G Steel is committed to supporting the customer’s needs by providing a stable supply of quality and cost-competitive material with short lead time. Also, as the only electric arc furnace (EAF) manufacturer with low carbon emission and a major recycler of scrap in Thailand along with GJS, G Steel has obtained a certificate from TGO (Thailand Greenhouse Gas Management Organization). As a low-carbon steel producer, it will enable the company to promote low-carbon products for Thai and export markets. All this will contribute to the growth of GDP in Thailand as well as to the Government’s goal of achieving carbon neutrality and the Circular Economy of Thailand.