SET-listed steel trader Permsin Steel Works Plc (PERM) has budgeted 1.5 billion baht to build the first plant making colour-coated steel products in Samut Sakhon province.

The investment will proceed through an affiliated company, Empower Steel Co, with plans for a production capacity of 100,000 tonnes a year for colour-coated steel products supplied to construction firms.

The facility will finish construction in 2020, with a plan to start operations during the fourth quarter of 2020 or the first quarter of 2021.

Natthaporn Yongvongphaiboon, chief executive of Empower Steel, said the company sees potential demand for colour-coated steel, driven by government megaprojects.

She said Empower is allocating 1 billion baht for the plant's construction, with the remainder for new machinery, equipment and maintenance.

"The first production will reach 50,000 tonnes of colour-coated steel in 2020, expecting to serve the local market and make some shipments to other countries," Ms Natthaporn said.

She said domestic production of colour-coated steel products is limited, so local distributors and traders have to import from overseas.

"Only three companies are capable of making colour-coated steel here," she said. "Two are Thai while one is a foreign company, so Empower Steel can fill a large market space."

Chukiat Yongvongpaibul, Permsin's chairman, said the company is diversifying its business from being solely a steel trader to a steel manufacturer.

Colour-coated steel products are used by construction companies as a replacement for tiled roofs and walls.

Mr Chukiat sees demand for colour-coated steel products in the Thai market reaching 840,000 tonnes a year.

"Once we start the operation, we plan to sell 90% of output in the local market while the remainder will be exported to Australia," he said.

In addition, Permsin is conducting a feasibility study for a new factory to produce aluzinc steel (using aluminium, zinc and silicon) to support the production of colour-coated steel in the future.

The aluzinc factory is the upstream process for colour-coated steel, Mr Chukiat said.

Permsin expects 2019 revenue to grow by 10% from 4.83 billion baht in 2018, when the company posted a net loss of 51.83 million baht.

It reported first-quarter revenue of 1.51 billion baht and posted a net profit for the period of 56.21 million baht.

Founded in 1989, Permsin provides slitting and cut-to-length services for various types of steel, including hot-rolled coil, cold-rolled coil and all types of surface-treated materials.

Permsin is an expert in steel processing and manufacturing of metal sheet roofing products.

At present, Permsin has two subsidiaries, Suntech Steel Works Co and Atlantic Pipe Co. Empower Steel is a Suntech subsidiary.

PERM shares closed yesterday on the Stock Exchange of Thailand at 1.38 baht, up five satang, in trade worth 8.7 million baht.

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