SET-listed Millcon Steel, a Thai steel manufacturer, is seeking partners to co-invest in recycling businesses to add value to scrap under the circular economic concept.
"Steel manufacturing can become cleaner and more energy-efficient if scrap metal is recycled to make new steel," said Pravit Horungruang, chief executive of Millcon.
The circular economic concept is based on an upcycling process to add value to unwanted materials, making them usable again.
The concept is part of the government's bio-, circular and green economic model, which encourages manufacturers to make value-added products with no or minimal impact on the environment.
According to Millcon, up to 70% of an unwanted car is scrap metal that can be recycled. The remaining 30% consists of plastics, electric wires and carpet, which can be sorted for use as refuse-derived fuel for waste-to-energy power plants, the company said.
Last year, Millcon recycled around 280,000 tonnes of scrap metal from deteriorated cars.
Moving towards environmentally friendly manufacturing is part of the company's goal to become a leader in the steel industry.
Millcon set a target to rack up 20 billion baht in revenue this year thanks to higher demand for steel, mainly from the government's infrastructure development projects.
The increase of global steel prices, which pushed local prices up by 23%, are another positive factor, the company said.
Millcon expects to sell around 1.2 million tonnes of steel in Thailand and overseas in 2022, up from a target of 600,000 tonnes last year.
Total steel consumption in the Thai market is expected to reach 19 million tonnes this year, driven by such projects as the construction of the Thai-Chinese high-speed train system and infrastructure development in the Eastern Economic Corridor (EEC).
Millcon plans to team up with new business partners to invest in recycling projects in the EEC area.
Mr Pravit believes the circular economy concept will help increase production efficiency, reduce costs and improve steel products to meet global green standards in the industry.
"Millcon is in the process of developing 'green steel', in line with standards in Thailand and the international community to better protect the environment," he said.
The company wants to join a global campaign to lower carbon dioxide emissions, said Mr Pravit.
