Thailand's second-largest hot-rolled steel coil maker, Nakornthai Strip Mill PCL, said on Monday expanded capacity would double its revenues to 20 billion baht ($521 million) in 2005. Executive chairman Sawasdi Horungruang said the impact of higher oil prices on the steel industry would be offset by strong steel demand for government infrastructure projects. "We forecast our revenues to double in line with our higher production," he told Reuters, without giving specific earnings forecasts.
In 2004, Nakornthai reported revenue of 97.3 million baht and net profit of 583 million baht.
Sawasdi said the firm would increase its production to 1 million tonnes of hot-rolled steel coil this year from 500,000 tonnes last year. It has an annual production capacity of 1.5 million tonnes.
Nakornthai resumed operations in 2004 after a five-year break to rehabilitate and restructure its business due to financial difficulties stemming from Asia's 1997-1998 economic crisis.
Hot-rolled steel coil is used in car parts. The Thai market is led by Sahaviriya Steel Industries PCL.
Sawasdi said he expected the company to rejoin the Thai share market's construction sector index in April after it had reported profits for four straight quarters.