Taiwan's Tycoon Group to Construct New 500,000-Ton Thai Steel Product Plant

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Demand for various types of steel billet in Thailand is running at 11 million to 13 million tons annually. However, supply capacity from the domestic steel industry is only about 4 million tons a year. With a current maximum annual output of 360,000 tons, Tycoons Worldwide Group (TWGT) (Thailand) is planning to construct an electric steelmaking plant in Thailand to improve vertical integration and put the company in a better position to compete in the Thai steel market.

TWGT is the second-largest supplier of wire rods in Thailand. The company's product range also covers steel wires, screws and nuts, which supply the construction, automotive and machinery industries. About 60% of TWGT's production is exported.

The Tycoon Group Enterprise Company (TPE:2022) (Taipei, Taiwan) is planning to construct an electric steelmaking plant in Thailand to improve the operations vertical integration and strengthen the company's competitive edge.

Plans for the new plant already have been approved by the local authorities, and construction could begin in 2012, with an investment of up to $66 million.

TWGT will secure an additional supply of about 500,000 tons of steel and billets when the plant begins operations. The expansion also will boost group profits in Southeast Asia. In the first half of 2011, the group had profits of $8.6 million on sales revenues of $149 million.

Plans for heavy industry and steelmaking development were sidelined in Thailand's 11th National Economic Plan (2012-16), as investment in Myanmar's Dawei zone became the focus of the desired industrial strategy.

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