Thailand-based Long Luck Group is building a new $36 million steel mill in the Samutsakorn district of Bangkok, according to Asia Pacific Investment House (APIH), the lead funding arranger for the project.
The Long Luck Steel Mill will produce, sell and distribute steel billets and steel wire rod, with an annual production of 380,000 mt. The steel mill, which is expected to be fully operational in mid-2014, will create approximately 300 local jobs over three years.
According to the Iron and Steel Institute of Thailand (ISIT), compared to its ASEAN partners, Thailand has the largest steel market in the region. Having a strong positive correlation with economic growth, its apparent steel use has increased. While sectors ranging from construction and automotive to electrical appliances all use steel products, there is a shortage of supply in the country. With local production supplying only approximately 30 percent of demand, Thailand currently relies on imports potentially risking the quality and security of the supply chain.
The APIH statement indicated that the Long Luck Steel Mill already has a buyer looking to purchase a minimum of 50 percent of the total yearly output produced.
