Mill Con Steel sees boost in 2012 profit on initial revenue from Green Mill
Mill Con Steel Industries, a pro?ducer and distributor of steel products and a fully integrated steel service centre, targets a profit margin of 15 per cent this year, and expects to start realising revenue from its Green Mill project during the current q
The company estimates its profit margin will rise to rise well above the steel industry’s normal rate of 4-5 per cent, thanks to the commercial operation of the Green Mill project early this year, said chief executive officer and president Sittichai Leeswadtrakul.
Mill Con has set a revenue target of Bt17 billion for the year.
The Green Mill project generates billets for general use and |special-quality purposes, aiming to mitigate the risk of reliance on imported raw materials.
The project, financially supported by the Board of Investment, is in commercial operation and is expected to realise revenue from the current quarter onwards, Sittichai said.
The project could also drive the company’s sales and profit margin because of its capability to produce billets in both commercial and special grades.
"In 2012, Mill anticipates |its revenue reaching Bt17 billion, up no less than 15 per cent from last year, thanks to its consis-|tently proactive strategy, new-market penetration and more |new customers. Now, the Green Mill project is starting commer-cial operation, which benefits Mill’s business more, as we have more variety of steel products to meet customers’ demand," he added.
Given higher administrative costs, interest and banking fees for the Green Mill project, the compa?ny posted a 1.64-per-cent decline in net profit to Bt111.53 million for last year.
However, revenue rose 53.51 per cent to Bt15.07 billion because of market expansion.
