Millcon Steel positive of growth despite Covid fallout
Millcon Steel Group, Thailand’s top steel manufacturer, is confident about its performance this year as it stands to gain from high-speed railway projects and the rising global trend in steel prices.
The company’s chief executive officer Prawit Horrungruang said the company’s focus will be to produce high-quality products and reduce its debt by as much as Bt3.8 billion.
He added that Millcon’s projected revenue should rise this year despite the Covid-19 fallout because the government is expected to launch start building the high-speed rail project, which will boost the demand for high-quality steel products.
“The demand for steel products this year is expected to reach 3.5 million tonnes, and global prices are also rising because the pandemic has delayed construction projects and disrupted ore production.
“This has caused an increase in raw materials. Imports and exports were affected and logistics also disrupted last year. These factors will push up the price of steel products this year.
“The Millcon Group is focused on the production of high-quality products which deliver a fat margin, therefore we expect our performance will continue to be positive,” he said.
The Millcon Group has an edge over other manufacturers, as it has a comprehensive integrated operation including steel-rolling mills, furnaces and steel-scrap recycling facilities. Most local steel manufacturers only have steel-rolling factories.
“The company is also strong financially and we plan to reduce debts by Bt3.8 billion this year,” Pravit added.