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GWR
07-07-08, 12:23 AM
Sahaviriya eyes cutting edge
By Achara Pongvutitham
The Nation
Published on July 7, 2008
Plan hatched for state-of-the-art industrial estate for centenary

Sahaviriya Steel Industries is studying the blueprint for a state-of-the-art integrated steel industrial estate, which will mark its 100th year of operation.

SSI's plan is part of its vision in terms of development and growth for the next 50 years. It has been the country's leading steelmaker for 53 years.

The whole project, including the deepest seaport in Asia, is estimated to cost US$6 billion (Bt200 billion) to $7 billion, of which the port facilities alone would need $1 billion.

The project responds to the increasing global demand for steel, with Asia forecast as becoming the biggest consumer.

President Win Viriyaprapaikit said last week that the estate would be set up in Chumphon, where it would support the group's steel plant nearby in Prachuap Khiri Khan's Bang Saphan district. It would require 5,000-10,000 rai of land.

Looking forward to the next 10 years, the company sees domestic steel demand doubling to 24 million tonnes per year.

Local steel production capacity would strengthen the country's export competitiveness in the future.

The project will be handled by the group's subsidiary, Prachuap Port, which has developed the first and second phase of the deep-sea port in Bang Saphan, five kilometres away from SSI's steel complex.

The expansion in Chumphon is for the fourth and fifth phases to complete the integrated steel business plan.

"The investment would be the group's showcase project for the 21st century, an integrated steel complex with the design concept of zones like in Disneyland," he said.

The architecture, operation management and treatment of the environs will be designed according to internationally practised environmental and safety standards, the company said.

The group has to cope with growing global competition. China, Brazil and India have set up integrated steel industries with advanced technology to ensure efficient manufacturing.

The port's loading capacity will reach 50 million tonnes for raw materials and 20 million tonnes for finished products. It will also become the deepest in Asia, capable of serving vessels of 320,000-380,000 tonnes.

Some companies have even sketched out 400,000-450,000-tonne ships to ensure lowest cost.

The company predicts that global steel demand will double in 15 years, driven by growing investment in infrastructure in developing countries, which will require huge volumes of steel and other metals.

The project will also support the company's investment strategy, which aims to set up manufacturing operations abroad, possibly in the Asean region, Win added.

http://www.nationmultimedia.com/2008/07/07/headlines/headlines_30077420.php