Steel plan calls for use of blast furnaces
The Iron and Steel Institute of Thailand yesterday revealed a productivity plan for the steel industry that was proposed to the Ministry of Industry on Wednesday, says the institute's managing director, Wikrom Vajragupta
He said the plan asked the government to support the generation of blast furnaces in Thailand and the development of a logistics network among steel manufacturers to reduce the industry's production costs.
It also focuses on managing energy costs and producing more value-added goods, he said.In addition, it will promote cooperation between the steel industry and other relevant sectors, such as the construction and automotive industries. Meanwhile, Deputy Industry Minister Piyabutr Cholvijarn said the plan might be revised, because it needed to show more obvious steps towards accomplishment. He said the steel industry faced a lack of modern technology and averaged 50-60 per cent of total production capacity. He added that manufacturers should improve their technology to serve demand in other sectors besides the automotive, electronic and construction industries. Wikrom said that domestic demand for steel declined by 10 per cent from 14 million tonnes last year due to the delay in the government's mega-projects. However, he expected demand to rebound to 14 million tonnes next year thanks to the stability of the political situation and infrastructure construction after flood damage and mega-projects. He added that the baht's appreciation might weaken investors' confidence. Chalida Ekvitthayavechnukul The Nation
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