Thailand based steel producer, Millcon Steel Plc (Mill) will be forming a joint venture with Thai and Myanmar partners to invest $15 million in a steel plant at the Thilawa special economic zone.
The total annual capacity of the steel production unit will be 90,000 tonnes per year,
According to Bangkok post, the joint venture is 45 per cent owned by Millcon, with Thailand based General Engineering Public Company Limited (GEL) holding 45 per cent and Myanmar local partners having the balance 10 per cent stake.
GEL, which was established in 1962, is a pioneer in field of pre-stressed concrete piles and other concrete products manufacturing. The Myanmar partner is the JV – THIHA Co- is a trading company.
The steel production for the plant will be ready for the market by the end of this year. At present Millcon has a capacity production of steel 850,000 tonnes a year.
Sittichai Leesawadtrakul , president and chief executive said Millcon said that this was the first Thai steel plant project in Myanmar and will to serve the rising demand of steel in the growth economy of Myanmar.
Currently, the steel consumption in Myanmar averages two to three million tonnes a year.
“The steel consumption in Myanmar has started to grow after the government announced several infrastructure project and the private investment increased in projects like shopping malls, housing and the building offices ” he said.
The company plans to expand the capacity of steel plant in the future.
Millcon expects a 15 per cent growth in revenue this year, up from 10.5 billion baht last year. It expects a further boost in revenue during the second half of this year due to increased in government spend on infrastructure projects.