Japanese steel producer Nippon Steel Corporation has announced a significant capital investment in its Thai subsidiaries, G Steel and G J Steel. The strategic investment, amounting to approximately 6 billion yen, aims to enhance the quality and competitiveness of the companies. These subsidiaries are the only integrated steel mills in Thailand that produce hot-rolled steel products.
Strategic Modernization
Since the acquisition of G Steel and G J Steel in March 2022, Nippon Steel has played a crucial role in revitalizing these companies, staffing key positions in production, sales, maintenance, corporate planning, and finance with its own employees.
The new investment will involve the installation of state-of-the-art skin pass facilities at G Steel, which will refine the finishing and inspection processes for hot-rolled steel products. Additionally, efforts will be made to streamline the scrap yard operations and improve the scrap management system.
Strengthening Market Presence
According to Nippon Steel, the investment serves to strengthen its position in Thailand, a key market where the company has been present for over 60 years. Currently, Nippon Steel operates 30 group companies in Thailand, employing around 8,000 people.
Thailand's robust manufacturing and infrastructure sectors make it a high-consumption market for steel, with continued growth expectations. G Steel and G J Steel play a crucial role in meeting the domestic demand for steel products, particularly for the construction and steel pipe sectors. Moreover, these companies are expanding their market reach by entering new business areas such as high-strength steels for structural applications and rolled steel products for the construction sector, as well as by increasing exports to Europe and neighboring ASEAN countries.
Sustainability Efforts
In line with global environmental goals, G/GJ Steel has also received a carbon footprint certificate from the Thai Greenhouse Gas Organization and is considering additional environmental certifications to enhance the sustainability of its operations. With these initiatives, Nippon Steel aims not only to enhance the competitiveness of its Thai operations but also to contribute to Thailand's national goals of achieving carbon neutrality and promoting a circular economy.
Nippon Steel anticipates that these improvements at G Steel and G J Steel will lead to significant enhancements in productivity and sustainability, marking a new chapter in Nippon Steel's activities in Thailand.
