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Published on April 10, 2008

Laksmi Mittal, co-chairman of ArcelorMittal Group, the world's largest steelmaker, said yesterday that his group was conducting a feasibility study for an integrated steel production plant in Thailand with annual capacity of 2 million to 2.5 million tonnes.

Visiting at the invitation of former prime minister Thaksin Shinawatra, the UK-based Indian tycoon said the study for a greenfield plant for both upstream and downstream operations should be completed in six to 12 months.

However, no investment requirements have been estimated for the medium-sized project yet.

ArcelorMittal is one of four foreign steel firms seeking to set up production facilities here. The others are Nippon Steel and JFE Steel from Japan and Baosteel from China.

In February, the Board of Investment said all four had expressed interest in applying for tax and other incentives for investment in upstream blast furnaces.

These projects could require an investment of over Bt100 billion each, BoI secretary-general Satit Charnjavanakul said.

The BoI had not yet completed the drafting of guidelines for considering promotional privileges for these large-scale projects, he said.

The government has also yet to find appropriate locations for the steel plants, each of which needs 5,000-10,000 rai of land.

Mittal, ranked the world's fourth richest man by Forbes magazine in a recent survey, said Thailand is a top-priority country for the group's expansion due to its improved political climate, large population and strong demand for steel products.

ArcelorMittal Group, formed from the merger of Mittal and French steel group Arcelor, has combined annual production capacity of 150 million tonnes, with annual revenues of more than US$77 billion (Bt2.44 trillion).

He cited the large automobile industry here, with annual production capacity of nearly 2 million units and a large construction industry, as indicators of strong market potential for steel products.

Mittal, who became acquainted with ousted premier Thaksin while he was living in exile in London following the September 2006 coup, said his group has been focusing on research and development to improve the quality and value of its products so as to stay competitive in the world market.

Petchanet Pratruangkrai

The Nation