SSI should sell UK assets

SSI is submitting a business rehabilitation plan to a Thai court in five months, and the SSI case was a key issue at SCB’s general shareholders’ meeting on Tuesday because the bank had set huge provisions of Bt22 billion, resulting in a decline in net profits last fiscal year.
Arthid Nanthawithaya, chief executive officer of SCB, told the shareholders that the steel plant in Britain would remain closed, but SSI still had some valuable assets it could liquidate, such as a port.
To start making money again, SSI has to rely on its operation in Thailand. The price of steel has improved because of lower supply, so SSI has enough cash flow to run the business, he told the shareholders.
To pay off its creditors, SSI in Thailand is the key, Arthid said.
The bank is still closely monitoring SSI’s operations but the company right now has a positive outlook because steel will be in demand for the infrastructure projects planned by the government.
Win Viriyaprapaikit, president and group CEO of SSI, met with SCB executives on April 1 to update them on the company’s situation.
Arthid told reporters that the bank recently met with SSI’s executives, and was told that the company had more confidence in the steel business because the price of the commodity was better.
The shareholders asked the bank about its investment portfolio after it sold its stake in Siam Cement for Bt4.46 billion to help to cover provisions for loans to struggling steel firm SSI.
The bank reported its five-year plan (2016-20) to shareholders, under which SCB will focus on expanding its customer base and build new business from small and medium-size enterprises and wealthy customers, including increasing its competitiveness in digital banking.
The bank is keen on managing investment flows of Thai and foreign investors, especially from China, South Korea and Japan, in the Greater Mekong Subregion.