Industry: Manufacturing Region: Thailand Transaction price: US $10 million Method of transaction: Equity investment
The company is a major steel manufacturer in Thailand and is listed on the Stock Exchange of Thailand. Its main steel product is Hot Rolled Coils (HRC). HRC products are directly used in the construction and engineering industries, and its supplement is slab.
The company is a major steel manufacturer in Thailand and is listed on the Stock Exchange of Thailand. Its main steel product is Hot Rolled Coils (HRC), HRC products are directly used in the construction and engineering industries, and its supplement is slab.
The company's distribution channels: 60% direct, 40% wholesale. 99.98% of the sales are for domestic customers, the customer base mainly includes iron and steel service center, pipe factory, direct users.
Company capacity:
The company has adopted advanced production processes. Its plant model "compact mini mill" includes electric arc furnace, continuous caster and hot mill. The capacity of compact mini mill is 1.8 MMtpa, which can be increased to 3.4 MMtpa.
I) Electric arc furnace
- The production capacity is 2.2 million tons/year
- Technology from Germany Mannesmann Demag Technology Co., Ltd
Ii) continuous slab casting
- The production capacity is 1.8 million tons/year
- Japan Sumitomo Heavy Industry Technology
Iii) hot rolling mill
- The production capacity is 3.4 million tons/year
- Technology from Mitsubishi Heavy Industries
First Quarter 2020 Financial Results:
Compared to 2019, sales revenue increased by 41.84% and gross margin increased from -8.43% to 3.66%. However, net profit margin fell to -26.61% from -21.14% due to higher selling expenses and currency losses.
In 2019, the company took a series of debt restructuring measures, including offering equity to convert debt, asking creditors to waive interest and other agreements related to debt restructuring, which reduced the total debt from 17.518 billion baht in 2018 to 7.497 billion baht in 2019. The equity attributable to the owner of the parent company was positive at Bt6.157 billion as at 31 March 2020.
According to the Iron and Steel Association of Thailand, domestic demand for hot-rolled flat steel products, the mill's main product, fell 3.44 percent compared to the first quarter of 2020.
Cooperation Intention:
Now the company is looking for domestic mergers and acquisitions or investment, please have the intention of the enterprise contact us.