Posted on 10 Oct 2011
Four big steel producers might cancel their plans for upstream ventures in Thailand if the government does not provide a clear direction by early next year, says Wikrom Vajragupta, president of the Iron and Steel Institute of Thailand.
"Many Thai auto producers are in negotiations with China to purchase steel due to the low transport costs, and [steel] investors now think that the 100-billion-baht investment [to set up a smelter in Thailand] is not worth it," he said.
The government two years ago received proposals from four big steel producers _ JFE Steel Corp and Nippon Steel of Japan, ArcelorMittal of India and Baosteel of China, all of which want to build an integrated steel smelter.
Mr Wikrom said there was now a low possibility of the investments going ahead due to opposition from communities, and the fact that the Southern Seaboard development plan has gone nowhere for 20 years.
"The appropriate areas should be Dawei in Burma or Koh Kong in Cambodia, which are suitable due to the short distance from Thailand," he said.
