Sumitomo Metals Investing in Plate Mill in Thailand
07/30/2012 - Sumitomo Metal Industries has decided to take part in the Canadoil Group’s steel plate mill business in Thailand by investing in the group, which is currently constructing a new steel plate mill in the country, and providing technical assistance to the mill.
Sumitomo Metal Industries, Ltd. has decided to take part in the Canadoil Group’s steel plate mill business in Thailand by investing in the group, which is currently constructing a new steel plate mill in the country, and providing technical assistance to the mill.
The new plate mill is scheduled to be operational in 2013 with an annual capacity of around 1.2 million tonnes and with a total investment of approximately US$600 million. Sumitomo Metals has invested US$50 million into the Canadoil Group’s holding company. With this investment Sumitomo Metals will acquire the capacity to manufacture around 300,000 tons annually from 2013.
High-grade steel plates, including those to be used in the energy field, have long been an area of strength for Sumitomo Metals. In order to respond to expected mid- to long-term growth potential, Sumitomo Metals plans to manufacture high-grade steel plates in the new mill and use the Kashima mill capacity to manufacture more value-added, highly-profitable high-grade steel plates. By assigning each mill a specialty in locality-oriented and different product types, Sumitomo Metals will realize a more efficient manufacturing system, which helps it to “accelerate distinctiveness” in its steel plate business and raise corporate value.
