NS BlueScope optimistic on infrastructure projects

Australia-based NS BlueScope, a metallic coating and pre-painted steel producer, expects its 2016 revenue to grow 3-5% from 12 billion baht last year thanks to government investment in megaprojects, which would boost demand for steel.

The infrastructure spending would also raise confidence among investors, said president of the Thai subsidiary Somkiat Pintatham.

The government’s policy to promote special economic zones (SEZs) along border areas is expected to help spur demand for metal sheets and some high-quality steel grades for building warehouses, industrial factories and residential housing, he said.

In particular, demand in the locations for the first phase of SEZs — Sa Kaeo, Trat, Tak, Mukdahan, Nong Khai and Songkhla — is expected to rise substantially.

Growing economies in neighbouring countries should also increase demand for metal sheets and steel in their industrial sectors, said Mr Somkiat.

As a result, NS BlueScope expects its exports to grow to 10% of total revenues this year.

“The company will focus on residential projects, commercial projects and factories as these are mostly our customers requiring high-quality metal sheet. Our marketing plan is to catch the eye of middle and highend markets because of their strong purchasing power,” he said.

NS BlueScope has a plant in Map Ta Phut with a total production capacity of 375,000 tonnes of metallic coated sheets and another 90,000 tonnes of painted steel annually.

The company also provides steel production and service solutions for a broad range of construction materials including in roofing, metal sheet walls, steel deck floors, walling and roofing structures and preengineered buildings in Malaysia, Brunei, Indonesia, Vietnam and Singapore.

Mr Somkiat said NS BlueScope planned to increase its production capacity to export more products to Laos, Cambodia and Myanmar, where demand is growing. In the long term, the company plans to start investing in those countries if demand continues to grow.

NS BlueScope (Thailand) Ltd was formerly BHP Steel Thailand Co before BlueScope Steel (Thailand) Ltd was established in 1995 through a joint venture between Australia’s BlueScope Steel Ltd and Loxley Pcl. In 2013, the company announced a joint venture between BlueScope and Nippon Steel & Sumitomo Metals Corporation to form NS BlueScope.