G Steel Public Company Limited (G Steel) has made a decision to invest in capital project for a total of 3 billion baht over the next 3 years, to upgrade its production facility for improving its quality capabilities, cost competitiveness and revamp outdated facilities.
To finance these projects, G Steel has entered into a long-term loan with Nippon Steel Thailand (NSTH), a 100% subsidiary of Nippon Steel Corporation (NSC), for an amount of 1.6 billion THB.
With this investment, G Steel is committed to turnaround the performance of the company and to contribute to the Thai economy growth and society, by supplying quality Hot Rolled Flat products to the various steel demands/customers in Thailand.
Domestic Steel Industry has been essential for Thailand to develop the infrastructure and to build a robust supply chain for the manufacturing industry. It has enabled Thailand to become the manufacturing hub.
Since NSC’s acquisition of majority stake in G Steel, in March 2022, with the technical and management support from NSC, the company has been in progress of improving the capabilities of the company. NSC is the fourth largest steel company in the world, with more than 60 years in Thailand, and supplies high quality steel to the manufacturing industry and various needs of the Thai society. Currently, NSC operates 30 group companies, employing approximately 8,000 people in Thailand and NSC is committed to grow the Thai business, including G Steel.
G Steel has been working to strengthen production stability, quality capability, and cost competitiveness to enhance customer reliability and ensure long-term sustainable growth. In order to strengthen these capabilities, G Steel has decided on a capital investment of approximately 3 billion baht over the next three years. The investments will include a) skin pass equipment for improvement of quality and expansion of its product range, as well as b) streamline of scrap yard operation and procurement process which will improve the cost competitiveness and reinforce the recycle system, and c) revamp the existing equipment to restore production stability and reliability. This will enable G Steel to build a robust profit structure.
As the only integrated domestic producer of HRC in Thailand along with G J Steel Public Company Limited (GJS), G Steel is committed to supporting the customer’s needs by providing a stable supply of quality and cost competitive material with short lead time. Also as the only electric arc furnace (EAF) manufacturer with low carbon emission and a major recycler of scrap in Thailand, along with GJS, G Steel has obtained certificate from TGO (Thailand Greenhouse Gas Management Organization). As a low-carbon steel producer, it will enable the company to promote low carbon products for Thai and export markets. All this will contribute to the growth of GDP in Thailand as well as to the Government’s goal of achieving carbon neutrality and the Circular Economy of Thailand.