Yamato Kogyo / To Renovate Section Rolling Mill in Thailand / To Expand and Solidify Foundations for ‘Establishing 3 Million Ton Steel Product Operation in the ASEAN Region’

  Yamato Kogyo will renovate the section rolling mill of ‘Siam Yamato Steel (SYS)’, their integrated electric arc furnace section plant in Thailand. Yamato Kogyo has designated the ASEAN region as the target region of their growth strategy, and they have also been proceeding with considerations regarding newly installing a rolling mill for ‘Posco Yamato Vina Steel (PY VINA)’, their integrated electric arc furnace section plant joint venture in Vietnam in partnership with South Korea’s POSCO. Yamato Kogyo is aiming to double their yearly steel product production capacity in the ASEAN region to 3 million tons including through M&A. By renovating and newly installing the rolling mills in Thailand and Vietnam, Yamato Kogyo will pursue solidifying its position as the leading section manufacturer in the ASEAN region.

  SYS is Thailand’s leading section manufacturer and its yearly production volume of crude steel and steel products is around 1 million tons. SYS has an overwhelming market share of about 90% in Thailand’s H-beam market. The No.1 and No.2 Plants of SYS are located in eastern Thailand’s Rayong Province, and the No.1 Plant is an integrated electric arc furnace plant with a yearly steel product production volume of around 700,000 tons. The Plant produces medium and large-sized H-beams and general purpose sections. The No.2 Plant is located near the No.1 Plant and began operations as an integrated electric arc furnace plant in 2010. Its yearly production volume is around 400,000 tons, and it produces small and medium-sized sections. The rolling mill scheduled to be renovated is the one at the No.1 Plant and by making the mill cutting edge the company will pursue such additional benefits as improvements to quality and productivity.

  As for PY VINA, while its yearly crude steel production volume is 1 million tons, its yearly rolling capacity is 500,000 tons. Yamato Kogyo is considering newly installing a rolling mill with a similar capacity with the existing one and the company plans to conduct the installment within the next 2-3 years. Yamato Kogyo’s current yearly steel product production volume is around 1.5 million tons, and once the new rolling mill in Vietnam is installed their production volume will increase to around 2 million tons.