G J Steel to Provide Skin Pass Services for G Steel's HRC Processing
In a significant development within Thailand’s steel industry, G J Steel Public Company Limited has announced a partnership with G Steel Public Company Limited to offer specialized services aimed at improving the quality and processing of Hot Rolled Coils (HRC). G J Steel will perform a range of critical operations, including inspections and flattening of coils, to address challenges impacting G Steel's HRC production.
Scope of the Service Agreement
The service agreement between the two companies will see G J Steel process up to 30,000 metric tons (mt) of HRC for G Steel, utilizing its specialized skin pass facility. The skin pass process is essential for improving the surface finish and mechanical properties of the steel, enhancing its overall quality and reducing defects in the final product. This agreement is worth THB 9.48 million ($191,448), and the services will continue until July 2025, providing valuable support to G Steel's operations during this period.
Benefits for Both Companies
This collaboration will not only benefit G Steel by improving the quality and efficiency of its HRC but will also enable G J Steel to maximize its capacity utilization. By offering this critical service, G J Steel aims to reduce the idle costs associated with its skin pass facility, ensuring that it operates at a higher capacity and generates more value from its existing assets. Additionally, this partnership strengthens the business relationship between the two Thai steelmakers, offering an opportunity for mutual growth and enhanced operational efficiency.
