Thailand’s G J Steel Public Company Limited announced that it will provide services to G Steel Public Company Limited by using its skin pass facility for inspection, flattening of coils, and other services to address issues with G Steel’s hot-rolled coils (HRC), according to a stock exchange filing.
G J Steel will process up to 30,000 tons of HRC for G Steel, charging a maximum service fee of THB 316 (USD 9.29) per ton, based on the estimated production cost of the skin pass service plus a 5pct margin. The total value of the transaction, including the service fees for all processed coils, is capped at THB 9.48 mln (USD 0.27 mln).
The service is set to continue until July 2025.
G J Steel’s board has reviewed the transaction and concluded that providing the skin pass service is reasonable. With spare capacity in its facility, the move will help improve utilization and reduce idle costs.
Together, G Steel and G J Steel produce 3.3 mln tons of hot-rolled steel annually, with their combined market share competing closely with Thai industry leader Sahaviriya Steel. Japan’s Nippon Steel acquired a majority stake in both companies in 2022.
1 USD / 34 THB