SSI Achieves 28 MT HRC Production

SSI reached the highest record with 28 million tons of cumulative HRC production on 8 February 2013 after continuous production and shipment to serve customers’ strong domestic demand, projected to grow 7.2% in 2013. It starts to realize synergy from vertical integration, providing security in its own raw material supply.

Mr. Win Viriyaprapaikit, Group CEO and President of Sahaviriya Steel Industries Plc. (SSI) revealed that on 8 February 2013, SSI Bangsaphan plant, Prachuap Khiri Khan, succeeded in 28 million cumulative tons of hot-rolled steel sheet in coil (HRC) production, the first and highest record among Thai steel companies, which underlines its leadership position in ASEAN. The plant also achieved a record of 12,553 tons of highest daily HRC production on 20 January 2013.

In addition, SSI Teesside, UK, which on 18 April 2011 started its steel slab production to supply as raw materials for SSI Bangsaphan, had announced its success in reaching cumulative 2 million tons steel slab production on 31 January 2013.

“These cumulative 28 million tons are the result of our continuous success in terms of production and sales. It attests the synergy from the vertical integration of our Thailand and UK operation, starting with the constant and reliable supply of steel slabs from our SSI Teesside plant to our SSI Bangsaphan plant. We will see from now consistent growth in volume and sales revenue and reducing production cost due to larger economy of scale, as envisaged under our Integrate World Class Steel Business strategy. Furthermore, we will soon begin to see better margin as our products gain market share under our Innovate Premium Value Products strategy.”

In addition, according to Iron and Steel Institute of Thailand, (ISIT), the domestic steel demand in 2013 will be approximately 17.5 million tons, increasing 7.2 % from 16.3 million tons in 2012. This is mainly because of several major infrastructure investment projects of the government and the expansion of downstream industries such as automobile and energy.