100th Annual Report 2006-2007 - Tata Steel

International Operations
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Tata Steel (Thailand)
Overview
Tata Steel (Thailand) Public Company Limited (TSTH), the
largest long steel producer in Thailand, established in 2002 as
a holding company consisting of NTS Steel Group (NTS), The
Siam Iron and Steel Co. (SISC) and The Siam Construction Steel
Co. (SCSC), manufactures long steel products with an installed
capacity of 1.7 million tonnes per annum.
Production Capacity & Expansion Plans
The NTS plans to set up a mini blast furnace (MBF) with an
annual production capacity of 500,000 tonnes at an investment
of approximately Rs. 455-482 crores (3,400-3,600 million Thai
Baht). This project will be the first of its kind in Thailand. The
project will be completed by the third quarter of 2008.
At present the company produces rebars, wire rods, small
sections, special bars and cut and bend products. However,
it is also examining the production of mesh bar and other
downstream products and services to provide contractors and
large scale project accounts with One-Stop Service, which can
reduce their time and cost of construction.
Production capacity (tonnes per annum)
NTS SISC SCSC Total
Rebars 400,000 – 500,000 900,000
Wire rods 400,000 230,000 – 630,000
Small Sections – 170,000 – 170,000
Total capacity 800,000 400,000 500,000 1,700,000
Products
Rebars: The Company produces round bars and deformed
bars in accordance with Thai Industrial Standards Institute
(TISI) for the construction industry such as roads, bridges,
buildings, houses, etc.
Low Carbon Wire rods (LCWR) : They are used as construction
parts such as binding wire, nails, wire mesh, galvanised wire,
barbed wire, welding wire, cold draw wire, screws and nuts,
etc.
High Carbon Wire Rods (HCWR) : HCWR are used for
manufacture of pre-stressed concrete wires and strands (PC
wires and PC strands) and numerous grades of spring, such as
compression, extension, torsion, slings, etc.
Small Sections: These sections are in various forms such as
angles or channels. They are produced in accordance with
Thai Industrial Standards Institute and are used in the
construction industry such as roof structures, electricity poles,
billboards, etc.
Special Bars: These round shaped bars are used for manufacture
of machineries and equipments and auto parts for cars and
motorcycles.
Operational Highlights
• Dividend paid for the first time since the establishment of
the Company at 3% (Thai Baht 0.03 per share).
• Refinancing the existing loans which resulted in debt
reduction by Rs. 36 crores (Thai Baht 273 million) and also
lower financing costs by at least Rs. 26 crores (Thai Baht 200
million) through the remaining debt payment period of 7
years, between 2006 and 2013.
• The projects undertaken for the burner system in arc
furnaces, fume plant improvement at SCSC and for improved
production processes of high-quality wire rods at NTS and
SISC were completed.
• The Company was classified in the category of “Very Good”
companies in the Corporate Governance Report of Thai
Listed Companies - 2006 with a total score of 88%, which