The joint venture Kobelco Millcon Steel Co (KMS), created by the Thai company Millcon Steel and the Japanese Kobe Steel, plans to increase the supply of high-quality steel to 12,000 tons per month from the current 10,000 tons per month. This is to meet the growing domestic demand for steel driven by the automotive industry.
KMS then plans to increase its premium steel production to 15,000 t /m over the next 2-3 years to supply Japanese automakers.
KMS has factories in Rayong and Bangkok with a total capacity of 400,000 tons per year. They supply high-quality steel and high-quality wire rod for the automotive and household industries as well as new target industries under the Eastern Economic Corridor (EEC) scheme. According to company employees, their current production capacity is 270,000 tons /year, or about 67% of the total capacity.
According to the Federation of Industries of Thailand (FTI), Thailand’s auto industry posted strong growth in April, with auto production increasing 322% year-on-year to 104,355 units. Domestic car sales in April rose 93.1% to 58,132 units, while car exports rose 160.16% to 52,880 units.
The FTI previously set a target to produce 1.5 million vehicles in 2021, up 5.12% from the confirmed 1.41 million units last year. About 750 thousand units of new cars will be exported.