Smelting plant sites identified

Construction News

Two preliminary sites for steel smelting plants have been identified after a long delay due to the political turmoil, the Iron and Steel Institute of Thailand has announced.

They are Songkhla’s Ranot district and Chanthaburi’s Laem Sing district, according to a feasibility study on areas for construction of the national upstream steel project conducted by Consultants of Technology Co, Golden Plan Co and Image Plus Communication Co.

Each location covers 10,000 rai, mostly abandoned shrimp farms.

Wikrom Vajragupta, director of the institute, said the site study will soon be submitted by the Industry Ministry for government approval.

Each site’s complex will produce five million tonnes of high-quality upstream steel smelter annually on 8,000 rai, with the rest of the land used for other facilities, residences, recreational activities and green areas.

The study estimates preliminary construction cost of 94.3 billion baht for the Ranot site and 98.6 billion for Laem Sing. This will include development of industrial land, a deep-sea port, raw water systems and a 300-megawatt power plant at each site.

Nippon Steel Corporation and JFE Steel Corporation, both from Japan, Europe-based Arcelor-Mittal and China-based Boa Steel Corporation committed to building an upstream steel smelter in Thailand after the Board of Investment extended invitations in 2006 and 2007.

“These foreign companies remain interested in developing Thailand as a steel production base for Southeast Asia,” said Mr Wikrom.

Thailand‘s steel demand is expected to rise by 10.9% to 13.2 million tonnes next year from 11.9 million this year and surpass 20 million in 2015 thanks to growth in the automotive and parts, electronics and construction sectors.


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