The highest quality so as to meet TIS standards and satisfy customers’ requirement
Chow Steel Industries Public Company Limited (“CHOW” or “the Company”) engages in production and distribution of steel billets using scrap as major raw material. CHOW has employed imported production technology well accepted globally. Steel billet production process encompasses three steps: First, scrap is prepared. Second, the scrap is then melted in the electric induction furnace (EIF) with required elements added to enhance the characteristics and quality of the steel according to customers’ demand. Last, the steel is cast into billet. The EIF technology will transform electricity energy into heat to melt iron and steel. The advantage of the induction furnace is a clean, energy-efficient and well-controllable melting process compared to most other means of metal melting. The Company’s customers use billet to manufacture round bar, deformed bar, and wire rod. These long products are mainly used in small and medium construction works such as residential and commercial units as well as other general construction works, including machine tools, auto parts and other appliances and large-scale constructions that require steel products of high strength, such as bridges, dams, expressways, and structures that need to tolerate high compression, as well as tall buildings.
At present, the Company has a factory to produce steel billet and a branch located in Kabinburi Industrial Estate, Prachinburi Province, on a total land area of around 70 rai. Initially, the factory had maximum billet production capacity of 250,000 tons per year and later increased the capacity by 480,000 tons per year in the phase 2 factory, thus making up a total production capacity of 730,000 tons per year (maximum capacity as requested for permit in the Environmental Impact Assessment Report or EIA Report). However, as the Company needs to manage and control electricity costs, it has the policy to produce steel billet only during off-peak periods, in order to keep electricity costs lower than that during the peak periods. The two factories of the Company are accordingly running at maximum combined capacity of 450,000 tons per year during off-peak periods at present. Its major customers are rolling mills that have no blast furnace and rolling mills that have their own blast furnace but with inadequate production capacity and hence relying on billets from external sources. Besides, the Company has become a member of the London Metal Exchange (LME), a world leading futures market, allowing for its exports of products to the global market, such as ASEAN, and reflecting international acceptance of its product quality. This can help boost the Company’s image and reputation as well as its products in overseas markets.
The company established Chow Energy Co., Ltd. (CE) is aimed at shareholding restructuring in the company’s subsidiaries. The restructuring will help to enhance clarity of business structure, whereby the Company will continue its core business of manufacturing and distribution of Steel Billet, while CE will operate business as a Holding Company by holding shares in other entities engaging in business relating to investment in, production and distribution of electricity from various kinds of energy. Subsequent to restructuring, CE will hold all shares in Premier Solution Co., Ltd. (PSCL) and Chow International Co., Ltd. (CI) and the conversion of Chow Energy Co., Ltd. into a public company limited on June 2016.
In 2015, the Company is progressively continuing to expand its renewable energy business in Thailand and overseas with Japan as the main market overseas based on the high electricity demand and Company’s expertise in Japan market. The renewable energy business will operated in 3 different business models: self-invest through the subsidiaries; turnkey project development for interested investors; and joint-venture investment. Starting from this year, the company will significantly acknowledge the income from the renewable energy investment which will result in the company’s growth in the next coming years. And in the year 2017, the company is still operating as planned by focusing on construction of solar power plant in Japan.