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Tycoons Fires Up Electric Arc Furnace in Thailand to Explore Vast Market for Fasteners There

2014/09/03 | By Steve Chuang

To take advantage of the vast business potential of the Thai market following implementation of the government's THB2.4 trillion 7-year infrastructure development plan there, the Taiwan-based Tycoons Group International Co., a major maker of fasteners, has just started up its the electric arc furnaces in its new plant in Thailand.

At the plant's inauguration ceremony, Tycoons chairman W.S. Huang noted that his group spent NT$3 billion (US$100 million) and 10 years building the new plant, making it the world's only fastener maker (at least for the time being) with an independent supply chain from steel billets through wire rods to fasteners. Huang added that the vertical integration provided by the new facility enables his company to better control its inventory, cut operating costs, and hedge the risk of materials price fluctuations, and to upgrade the quality and value of its products.

Spread over 32 hectares of land, the plant is equipped with advanced electric arc furnaces, refining furnaces, and vacuum deaerators for the production of steel billets, cold heading wires and rods, steel alloy, stainless steel and steel bars at an annual capacity of 720,000 tons.

With the plant operating, Huang emphasized, Tycoons will be better able to explore the lucrative business opportunities brought not just by the Thai government's infrastructure development plan, which will surely trigger a huge demand for steel and fasteners in the years to come, but also by the upcoming expansion of ASEAN's economic integration next year. The chairman is hoping for a revenue growth of 20%. (SC)

Tycoons Group's Earnings Per Share, by Quarter
Quarter

Q3, 2013

Q4, 2013

Q1, 2014

Q2, 2014

EPS

- NT$0.17

- NT$0.53

NT$0.07

NT$0

Source: Market Observation Post System