Meranti launches Thai green steel project

Meranti plans to bring Green Steel to Thailand.

Singapore, May 16 2023 – Singapore-headquartered Meranti Steel plans to develop a DRI-EAF steelworks for flat products in Thailand. The plant is intended to supply green hot rolled coil to domestic manufacturers and for export, founder and CEO Sebastian Langendorf tells Kallanish in an exclusive interview.

The project includes a DRI plant using natural gas, and would be ready for transition to use of green hydrogen when available. It also includes a carbon-dioxide separation system and aims to become fully carbon neutral over time. The DRI plant will feed an EAF, continuous caster, and hot strip mill with 2 million tonnes/year capacity. Production is planned to start in the second half of 2027.

Meranti is working on integrating the steel project with offsite renewable energy farms, and it is in discussions with a renewable energy partner. Meranti says it is also in discussions with a wide array of local partners including for logistics, industrial gases, and land. It is exploring sites for the steelworks near Map Ta Phut port near the industrial hub of Rayong.

The Thai industrial sector is one of the largest steel consumers in the region, including automotives and home appliances. Most traditional fuel vehicle production is catered to through long-term contract imports. A new wave of investment in New Energy Vehicle (NEV) production means there will be growing demand for low-emission steel from both existing and new auto manufacturers in the country.

Langendorf notes that “Meranti will offer its green HRC across a range of segments. He adds that, “the project will provide a significant contribution to strengthening Thailand’s domestic steel production, while delivering a modern and efficient upstream business with a green footprint.”

Meranti’s green steel project is outside of its JFE MERANTI Joint Venture which continues to operate in Myanmar. The plant includes a 100,000 t/y colour coating line and 180,000 t/y galvanizing line and started operations in 2020.