Steel firm builds new Thai plant
- November 29, 2012
Published: 28/11/2012 at 12:00 AM
Bangkok Post / Newspaper section: Business
India’s Usha Martin Co, Asia’s leading manufacturer of long steel products, has joined hands with a Japanese partner to set up its second manufacturing plant in Thailand at a cost of 500 million baht.
Its Thai wholly owned Usha Siam Steel Industries Co and Tesac Wirerope Co, Japan’s leading wire rod producer, have formed Tesac Usha Wirerope with 50-50 ownership.
The joint venture has begun to develop the plant on 9.5 rai of land in the Pathum Thani’s Nava Nakorn Industrial Estate.
The facility is next to Usha’s existing plant and will be operational in 2014 with monthly output of 1,000 tonnes.
Amogh Sharma, the managing director of Usha’s Thai operation, said the two parties discussed the partnership three years ago, but the development was delayed due to last year’s floods, when production was suspended for about five months.
He said Usha selected Tesac as a partner due to its technology and customer base for special steels in the elevator, marine and infrastructure sectors.
“We match our long experience with a partner with high technology and end-users of long steel products,” said Mr Sharma.
Mr Sharma said its production of long steel in Thailand has not been affected by Chinese-made steel rods dumped on the Thai market at a 14% lower price, as Usha has focused on special-grade steels and high-end users.
The two parties see the potential for Thailand to become a production base for Southeast Asia after the Asean Economic Community is established in 2016.
Usha founded its Thai operation in 1984.
It has clients in the sectors of fishery and marine products, construction, infrastructure and power.