Steel JV in Myanmar

Steel JV in Myanmar

The SET-listed Millcon Steel Plc (MILL) has formed a joint venture with Myanmar's Thiha Group to tap growing demand for steel and other construction materials in the neighbouring country.

Millcon owns 51% of Millcon Thiha Co and the Myanmar partner the rest. The joint venture will trade in steel and other construction materials in Myanmar.

Majority owned by the Leeswadtrakul family, Millcon is a maker and trader of many kinds of steel products including round bars, deformed bars, lip channel steel and steel pipe.

Sittichai Leeswadtrakul, president and chief executive of Millcon, said the expansion was aimed at entering a new market to establish a foothold and growing from there.

Millcon will also have an advantage in being among the first foreign steel and construction materials companies established in Myanmar, Mr Sittichai said.

"Myanmar's economy has grown continuously thanks to government investment in basic utilities to support foreign investment flowing into the country," he said. "Such investment has fuelled high economic growth in the country, and this will benefit the growth in the country's steel industry."

With a population of 61 million, Myanmar uses 1.33 million tonnes of steel per year compared with 17.7 million tonnes consumed in Thailand, which has a population of 70 million.

MILL shares closed yesterday on the SET at 1.97 baht, down two satang, in trade worth 365 million baht.

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