Siam Industrial Wire forms JV with Nichia Steel ahead of AEC
Siam Industrial Wire (SIW) has formed a joint venture with Nichia Steel for the manufacture of galvanised iron wire, single-stranded products and zinc-coated steel and aluminium.
The move is part of a strategy to use Thailand as the production base for the Asean Economic Community (AEC), which comes into effect in 2015.
SIW managing director Chong Pek Hoong yesterday said the company would hold a 60-per-cent stake in the joint venture – NS Wire – in which Bt700 million is being invested. The Japanese partner will hold the remainder.
NS Wire will have a production capacity of about 36,000 tonnes a year. The plant will start operations next month at about 60-per-cent capacity, with full-scale operations set to commence next year. Output will be split equally between the export and domestic markets.
“We plan to start exporting in October this year,” said the MD.
Meanwhile, SIW’s business plan for the period through to 2016 is to increase its overall annual production capacity to 300,000 tonnes, from 200,000 tonnes last year.
The capacity-increase programme will commence this year with an outlay of Bt1 billion, he said.
“We are studying ways to raise capital for expanding our investment, which could entail increasing our registered capital or forming a joint venture for our new production plant,” he said.
He added that the demand for steel in Thailand had the potential to grow by an average of 10 per cent a year, in line with the country’s construction growth.
As a result, SIW targets revenue of Bt6 billion this year, up 15 per cent from last year’s level.
