The Thai stainless steel unit of South Korean giant Posco is aiming at 2013 sales growth of 10% to 189,000 tonnes as major clients thrive.
Posco-Thainox makes cold-rolled stainless steel with many uses. SOMCHAI POOMLARD
Lee Dong-jin, a vice-president of Posco-Thainox, said the company's strategy this year is to focus on the automotive and electric appliance industries together with their strong growth potential.
Posco-Thainox plans to increase its sales contribution from automotive and home appliances to 40% from 30% now.
Big clients in the auto industry include Toyota, Honda and Nissan, while major customers for appliance and electronic components are Samsung, LG and Sharp.
These industries are building their production bases for export in Thailand, with Posco-Thainox's stainless steel serving as a core material.
Car production this year is forecast in a range of 2.55 to 2.8 million units, with demand for stainless steel a given.
Apart from the above two industries, stainless steel is used by heavy industry, energy and agriculture in applications such as water tanks and rice mills.
Posco-Thainox makes cold-rolled stainless steel in both magnetic and non-magnetic types.
Domestic clients account for 70% of sales, with the rest exported to Europe, the US and elsewhere in Southeast Asia.
Mr Lee said the parent firm wants to see Thai production capacity rise to 300,000 tonnes a year by the end of 2015, up from 200,000 now at the factory in Rayong.
Posco also runs a stainless steel plant in Vietnam with annual capacity of 240,000 tonnes.
The company has declined to disclose details of its expansion and investment plans.
Mr Lee said it needs to gauge demand in local markets before making decisions.
Posco-Thailand has launched a one-stop stainless steel processing centre in Chon Buri province, providing custom-made stainless steel products tailored to client demands.
The Thai unit invested US$8.6 million in the centre to serve a greater variety of clients.
Mr Lee said the company has spared about 55,000 tonnes from its yearly production in Rayong to serve the custom orders at the centre.
Shares of INOX closed yesterday on the Stock Exchange of Thailand at 1.76 baht, up nine satang, in light trade worth 50,000 baht.
