Posted on 06 Mar 2009
Danieli Far East Co, a metalworking machinery maker and designer, plans to invest 1 billion baht in production capacity expansion this year to serve its rising demand projection. The company plans to invest in a new hydraulics steel plant, automation equipment and a product design centre next to its plant in Rayong's Eastern Seaboard Industrial Estate.
The design centre is part of its strategy to place more operations in
The local unit plans to hire 450 more engineers this year and 300 next year to have 2,500 workers by 2010. It recently signed a memorandum of understanding with the Iron and Steel Institute of Thailand (ISIT) on skill training co-operation.
The Thai unit of Italy-based Danieli C. Officine Meccaniche SpA projected 10 billion baht in revenue this year from 3 billion a year earlier.
While the global slump has cut demand for steel worldwide, Boonnarg Mockmongkonkul, chief executive of Danieli Far East, said small steelmaking factories with 1 million tonnes of production capacity in North Africa and the
''All of our equipment products and system design are now shipped overseas and we see continuing demand in steel machinery in these two regions, as they are our main customers,'' he said.
''Furthermore, some of our customers believe now is the right time to invest in steel factories as the construction cost is cheaper.''
The company relies solely on export sales as local factories prefer cheaper products from
''We are waiting for the establishment of an upstream steel industry. We want the government to make this project a reality. It will not only expand the future of the steel industry, but it will also boost domestic investment and employment too,'' he said.
