Steelmaker mill con lists on main board

Company executives said trading on the main bourse should help boost confidence among its domestic and foreign investors.

"After acquiring a stake in Burapa Steel Industries, Mill will now have a combined capacity of 800,000 tonnes of steel products a year, up from 500,000 tonnes.

It should realise income in the second quarter," said CEO and managing director Sittichai Leeswadtrakul.

Mill's paid-up capital is Bt400 million and its shares have a par value of Bt1.

The firm will trade under the construction materials sector.

Mill shares yesterday closed at Bt6.80, unchanged from the previous day.

Mill is a local firm engaged in the production and distribution of steel products such as round bars, hot rolled coils, steel sheets, strips and steel pipes.

They are used in various industries such as construction, automobile and furniture.

Mill operates two production plants.

"The move to trade on the SET should be good for many reasons, especially in reflecting the company's strong financial standing," said Sittichai.

Currently, Mill's capitalisation was nearly Bt3 billion.

The company had bought an 85-per-cent equity in Burapa Steel last month.

Sittichai said the acquisition would help the company save on logistics costs.

In addition, Mill and Burapa can cross their customer services.

Burapa's steel plant, which is located in Rayong, will now serve both new and old customers in its area.

As a result, the company should enjoy a better gross margin.

He said the steel industry tends to grow in tandem with overall economic growth.