Bangkok: Millcon is preparing to resume steel production, joining hands with Danieli to sign an MOU to reaffirm confidence in producing high-quality standard EF steel. Millcon Steel Public Company Limited or Millcon, one of the integrated steel product manufacturers and distributors, by Mr. Sittichai Leeswadtrakul, Chairman of the Board of Directors of Millcon Steel Public Company Limited, signed a Memorandum of Understanding (MOU) with Mr. Alessandro Menocci, Chief Executive Officer of Danieli Co., Ltd., the world’s No. 1 high-quality machinery and machinery technology developer from Italy.
According to Thai News Agency, Mr. Sittichai stated that the signing of the MOU aims to build confidence in the potential of the machinery and the steel production process of Millcon, which is ready to return to steel production after the Thai steel industry was impacted by competition from cheap imported steel from China, causing Millcon to halt production last year.
This collaboration includes a project to inspect and assess the readiness of systems and machinery from Danieli, a manufacturer and developer of high-quality machinery technology from Italy, especially the Electric Furnace (EF) system used in Millcon’s production process. With a total production capacity of 800,000 tons per year, Millcon is poised to meet the increasing demand of the steel market.
The electric furnace system is capable of utilizing all grades and types of scrap metal, eliminating foreign matter, and controlling the quality and chemical values in production. This results in steel with purity and consistent quality according to the Thai Industrial Standards (TIS). Additionally, the process of remelting scrap metal with an electric arc until the steel melts is considered a use of clean energy that is environmentally friendly.
Mr. Sittichai highlighted that the MOU signing is a significant step that reinforces the commitment of both organizations to elevate the standard of steel production quality and to continue operating machinery at full capacity to support the industrial sector of Thailand and the region.