Japan steelmaker to set up new plant for auto material in Thailand
BANGKOK, NNA - Japanese specialty steel manufacturer Daido Steel Co. will launch a plant in Thailand through a joint venture to be created by its subsidiaries to manufacture steel bar for the local auto industry, capitalizing on growing demand for highly functional auto parts materials in Southeast Asia.
The subsidiaries, including Shimomura Tokushu Seiko Co. specializing in cold drawn steel bar, formed the joint venture capitalized at 430 million baht ($14 million) on Monday, with Shimomura taking a 51 percent stake while Daido's trading subsidiary Daido Kogyo Co. and its Thai unit Daido Kogyo (Thailand) Co. hold the remainder, according to a statement released Thursday.
They will invest 1.1 billion yen ($10 million) to build the plant in the Pinthong industrial estate in the province of Chonburi east of Bangkok to produce cold drawn steel bar suitable for auto parts, said the statement.
The new plant, set to begin operating in April 2021 with initial monthly output of 1,000 tons, marks Shimomura's third overseas plant after those in Malaysia and China, a Daido spokesman told NNA on Thursday.
“We need to build a supply chain in Thailand, the heart of Southeast Asia, as demand for high-function auto parts materials is increasing in the region,” the spokesman said. (NNA/Kyodo)