Japanese steelmaker Kobe Steel has announced that it has agreed with Thailand-based Millcon Steel Public Company Ltd to establish a joint venture called Kobelco Millcon Steel Co., Ltd (or KMS). The two companies will sign a formal agreement in the near future and establish the joint venture later this month. Kobe Steel and Millcon signed a memorandum of understanding (MOU) in June last year to jointly consider a joint venture to produce and sell steel wire rods in Thailand.
In 2014, Millcon Steel acquired the assets of Thai Special Steel Industry Public Company Limited (or TSSI) and set up Millcon Special Steel Company Limited (MMS) to hold the assets. Kobe Steel and Millcon Steel have now decided to convert MMS into a joint venture by Kobe Steel's equity participation. With Kobe Steel’s participation, equipment will be installed and preparations will be made for the production of special steel wire rods, since automobile production in Thailand and in ASEAN countries is expected to experience strong growth, and therefore wire rod demand is also anticipated to increase. Production of special steel wire rods is anticipated to begin in May 2017.