Local steelmaker Millcon Steel Plc is optimistic about resuming production after getting through tough competition, mainly caused by low-cost steel imports from China.
The company, which suspended operations following the influx of inexpensive products into the Thai market, has finished restructuring its business plan and is ready to start production in the third quarter, said Sittichai Leeswadtrakul, chairman of executive committee of Millcon Steel.
Mr Sittichai recently signed a memorandum of understanding with Danieli Co, an Italian steel machinery manufacturer and technology developer, to have its experts inspect Millcon's electric arc furnace (EAF), before commencing production.
EAF is designed to melt steel scrap. It is energy efficient and releases lower emissions.
"This collaboration will support our steel production to serve industries and their demand that is expected to increase in the future," said Mr Sittichai.
Millcon plans to produce 800,000 tonnes of steel a year, based on the EAF technology.
EAF is capable of utilising all grades and types of scrap metal, removing impurities and allowing for superior control over quality and chemical composition.
Danieli's inspection of Millcon's steelmaking process will restore the company's confidence in steel production, said Mr Sittichai.
Millcon supplies specialty steel to various industries, including car assembly, construction as well as the Chinese-Thai high-speed rail system development.
The company's focus on EAF tech comes as the Industry Ministry is planning to ban the use of induction furnace (IF) technology due to environmental concerns. The plan is being promoted by Industry Minister Akanat Promphan.
IF-based steelmaking operates in an open system, so it easily to emits dust and other forms of hazardous gas, according to media reports.
Theoretically steel from the IF process meets acceptable standards, but consistently maintaining high quality in all outputs is difficult.
The ministry suspended the operation of Xin Ke Yuan Steel Co, which uses IF technology, in December last year as its products did not meet standards set by the Thailand Industrial Standard Institute.
The company supplied products for the construction of the State Audit Office building which collapsed during the March 28 earthquake.