Posted on 04 Feb 2014
As the steel industry copes with the global economic slowdown, a subsidiary of Sahaviriya Steel Industries (SSI) has come up with cost-control measures to improve competitiveness. Sahaviriya Plate Mill Co (SPM) is pushing ahead with cost controls that it hopes will provide an edge once the situation returns to normal, said energy manager Karn Sangthong. Last year, SPM used only half of its steel plate production capacity out of a maximum of 600,000 tonnes.
"SPM plans to develop energy-saving hot-rolled steel production that will reduce our energy costs by 33% or 3 million baht from a total of 9 million baht annually," said Mr Karn.
Energy is one of the biggest expenses in steel production. SPM set aside 116.56 million baht for its plant in Bang Pakong, Chachoengsao, to carry out energy-saving programmes over the past several years.
The company so far has reduced electric consumption by 6.9% or 1.49 million kilowatt-hours, while cutting fuel consumption by 14.3% or 1.84 million litres.
SSI's past investment in energy savings centred on heat recovery. Return on investment was realised in two and a half years. On average, SPM spends 350 million baht a year in energy costs, mostly for fuel and electricity use.
