Grand Opening Ceremony for Thai Cold Rolling Joint Venture

TCRSS's cold rolling mill in Bang Saphan

Thai Cold Rolled Steel Sheet Public Co., Ltd. (TCRSS), a joint venture between an NKK/Marubeni Corporation-led Japanese consortium and the Thai conglome rate Sahaviriya Group, held a grand opening ceremony on April 25 to mark the official commissioning of the company's cold rolling mill. Thailand's first cold rolling mill built at Bang Saphan, about 400km southwest of Bangkok, has been operating smoothly since it started commercial production in June 1997.

The Bangkok-based joint venture, headed by President Wit Viriyaprapakit, president of the Sahabiriya Group, was founded in June 1995 to launch Thailand's first cold rolled steel sheet project. Following a capital increase in February 1998, TCRSS is now capitalized at 4.38 billion baht and is 52% owned by its Japanese partners (23% each by NKK and Marubeni and 6% by four other trading companies - Nichimen Corporation, Tomen Corporation, Okura & Co. and Toyoda Tsusho Thailand Co.) and the remaining 48% by the Sahaviriya-led Thai investors.

NKK supplied the main facilities to the one million ton-per-year cold rolling mill, including the pickling line, cold tandem and temper mills and coilers, and provided technical and operational assistance. The plant is capable of producing cold rolled steel sheet 0.18mm to 3.00mm thick and 600mm to 1,550mm wide to meet the needs of Thai manufacturing industries including local Japanese auto and electrical appliance makers.

Thai Prime Minister Chuan Leekpai, Japanese Ambassador to Thailand Hiroshi Ohta, Sahaviriya Group executives and more than 400 guests from local government and business attended the April 25 grand opening ceremony. Attendees from Japan included NKK president Yoichi Shimogaichi, Marubeni vice president Hiroshi Matsumura and Export-Import Bank of Japan director Kensaku Aoki. Following the ceremony, the Prime Minister and guests toured the new rolling mill. The Thai government is eagerly promoting an industrial development program in the southern region of Bang Saphan.

Since the start-up of commercial operations, TCRSS has gradually increased its output of cold rolled products, while making sample shipments to local Japanese car and home appliance manufacturers. Having earned formal approval for the quality of its products from these manufacturers, TCRSS aims to increase its output to over 50,000 tons per month by the end of this year. Despite the current weak demand in Thailand due to the financial and economic crisis, the joint venture is concentrating its efforts on enhancing competitive production in anticipation of demand growth after 2000.

The Sahaviriya Group is a leading Thai industrial concern with a long-standing business relationship with NKK. At present, the group is constructing an integrated steel complex with large-scale port facilities at its own industrial site in Bang Saphan. Prior to the TCRSS cold rolled steel sheet project, NKK also tied up with Sahaviriya to jointly operate Thailand's first electrogalvanizing line (EGL) for surface-treated steel sheet. In addition, NKK provides technical and operational assistance to Sahaviriya's hot rolling mill project. NKK's wide-ranging involvement - from hot and cold rolling to surface treatment - is helping the Sahaviriya Group establish a reputation for in itiative and competitiveness in the Thai steel sheet market.