Nippon and JFE Steel interested in investing in steel in Thailand

In spite of the fact that the global recession has hit the steel industry hard, Japan based Nippon Steel and JFE Steel seem interested in investing in upstream steel facilities in Thailand. It may be mentioned here that late last year, the company had announced production capacity cuts owing to the fall in world demand.

A company executive said that both firms are still eager to expand blast furnace production in Thailand. The executive said that “This investment is a long-term commitment which would take time to develop and set up. By the time the project is complete, the global economy will have picked up.”

Besides Nippon Steel and JFE Steel, ArcelorMittal from Luxembourg and Baosteel from China have also expressed keen interest in developing high-quality steel blast furnaces in Thailand.

The source said that “Thailand remains a prime location for such investment based on domestic market demand to support the automotive and electronics industries. Its strategic location for iron ore imports also helps. However, their decision would also depend on support provided by the local government.”