Articles
POS-SeAH Steel Wire (Thailand) Co., Ltd. Bringing Added-Value to the Automotive Industry
31/03/2020
Established in 2015, POS-SeAH Steel Wire (Thailand) Co., Ltd. is a joint-venture company between POSCO and SeAH Special Steel, two leading Korean companies in the steel industry. The Thai venture manufactures Cold Heading Quality (CHQ) Wire and other products. It is the latest addition to the company’s presence in Asia, following 3 factories in Korea and 2 in China.
Located at WHA Chonburi Industrial Estate 2 (WHA CIE 2), the BOI-approved facility covers a land area of 33,730 sq.m. It started its operations in November 2016, with a production capacity of 30,000 tons. Raw materials, in the form of wire rods, are imported from POSCO in Korea, delivered via the Laem Chabang deep seaport and transformed in the Chonburi plant into CHQ wire for making bolts, nuts and screws, used mainly in the automotive industry.
“We sell our products to fastener manufacturers, who in turn supply car makers. The automotive industry requires high-quality components for engine and steering parts,” says Mr. Kyung-Hwan Choi, Managing Director of POS-SeAH Steel Wire (Thailand). “In addition, our products are also used in industries such as machinery, shipbuilding, electronics and construction.”
Leveraging on its strong experience with Korean carmakers such as Hyundai and Kia, POS-SeAH Steel Wire saw an opportunity for its products in Thailand. “We decided to invest here, because it became an important car producer in the region. Our location at WHA CIE 2 presents an enormous advantage due to our proximity to the EEC’s automotive cluster. We aim to expand our market share by supplying all car makers, including Japanese brands,” explains Mr. Choi.
“Being close to Laem Chabang is also convenient for exporting our products to other Southeast Asian countries,” he adds. “We have just started exporting to Vietnam and Indonesia, and we are now eyeing the Indian market.”
“I can say that thanks to WHA, the start of our operations was smooth and efficient. With their 30-year experience welcoming and working with foreign investors, they guided us every step of the way and helped us establish good relations with local authorities,” Mr. Choi recounts.
After only three years, the company is already considering expansion plans in Thailand, especially with the development of electric vehicles.
Contact Information:
Mr. Kyung-Hwan Choi
Managing Director
POS-SeAH Steel Wire (Thailand)
Tel. +66 33 143 470-2
Remarks: The article was written for WHA Group Newsletter March 2020 Vol. 46