Meranti Green Steel’s Vision for a Greener, Stronger Thailand

Currently, people are increasingly prioritizing environmental issues, especially reducing greenhouse gas emissions to combat global warming. One of the main causes of the greenhouse effect stems from excessive carbon dioxide emissions. “Steel” is a key material used in the production of various products. However, steel production contributes 8% of global carbon dioxide emissions.

Therefore, to move towards carbon neutrality and reduce carbon dioxide emissions, an environmentally friendly steel production process called “Green Steel” has emerged. It is believed to be a potential solution to this problem. Currently, major steel companies in Asia are beginning to launch environmentally friendly steel, or Green Steel, and Thailand is increasingly paying attention to this trend. This presents a significant opportunity for Thailand as international companies start to explore and invest in environmentally conscious industries, such as Meranti Green Steel (Thailand) Co., Ltd., which aims to elevate Thailand’s steel industry to adopt green and eco-friendly production practices.

About Meranti Green Steel

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(A preview of Meranti Green Steel’s first green steel plant in Southeast Asia, located near Rayong, Thailand)

Mr. Sebastian Langendorf, CEO and founder of Meranti Green Steel (Thailand) Co., Ltd., stated in an interview with Matichon that Meranti Green Steel was established to meet the urgent demand for more environmentally friendly steel production. The steel industry is one of the largest contributors to global carbon dioxide (CO2) emissions, accounting for about 7–8%.

The company’s mission is to reduce CO2 emissions and promote eco-friendly steel production. Additionally, Meranti Green Steel emphasizes minimizing nitrogen oxide (NOx) emissions, which are harmful to the environment. The company is committed to becoming a leader in reducing NOx emissions among global steel producers.

Initially based in Singapore, Meranti Green Steel plans to expand its green steel production across Southeast Asia, with the ambition of establishing Thailand’s first green steel factory in the region. The company is also active in the Middle East and Western Australia, participating in green steel supply chain projects in those regions. Although Singapore remains the company’s headquarters, its focus is on the Asia-Pacific market.

Three Factors for Choosing Thailand

Mr. Sebastian highlighted three key factors influencing Meranti Green Steel’s decision to select Thailand as a base for developing clean energy projects and green steel production:

  1. Infrastructure:

Thailand offers the best infrastructure for green steel production in Southeast Asia, including ports, transportation systems, electricity and human resources. The country also has an existing steel industry, making it an ideal foundation for eco-friendly steel production.

  1. Strong downstream steel industries:

Thailand is an attractive location due to its robust downstream steel industries, such as automotive, home appliances, and construction. Thailand consumes 17 million tons of steel annually, with strong domestic demand for locally produced steel.

  1. Historical leadership in steel production:

Thailand was once Southeast Asia’s leading steel producer 25 years ago. Meranti Green Steel sees a great opportunity to promote domestic production to reduce reliance on imports, especially for high-grade steel used in industries such as automotive and home appliances. These high-grade steels are currently imported mainly from Japan and South Korea. The company aims to revive Thailand’s steel industry and make it both sustainable and environmentally friendly.

Mr. Sebastian emphasized that revitalizing Thailand’s steel industry is crucial to maintaining its competitiveness. Without such efforts, downstream industries may relocate to other countries. Thus, modernizing and greening Thailand’s steel industry is essential.

Expanding Green Steel Production in Southeast Asia

Meranti Green Steel’s business model aims not only to help businesses using steel remain competitive but also to support Thailand’s commitments to achieving carbon neutrality by 2050 and net-zero greenhouse gas emissions by 2065, as pledged at COP26 in 2021. The company aligns with the UN’s Sustainable Development Goals (SDGs) and the Paris Agreement to keep global temperatures below 1.5°C.

Meranti Green Steel plans to expand its green steel production across Southeast Asia. Its plant in Thailand is located in the IRPC Eco-Industrial Zone in Rayong Province, part of the Eastern Economic Corridor (EEC) development project. The Thai government aims to transform the EEC into a logistics hub for Southeast Asia, enhancing land and sea trade connectivity through initiatives such as railway system upgrades, the development of Laem Chabang and Map Ta Phut ports, and the expansion of U-Tapao Airport. Once these projects are complete, Thailand will have enhanced global market access.

Collaborations and Goals

Mr. Sebastian revealed that Meranti Green Steel has extensive partnerships both locally and internationally. In Thailand, the company collaborates with GPSC, IRPC, BIG, Danieli Thailand, King Mongkut’s University of Technology Northern Bangkok, and IRPC Technological College in Rayong. Internationally, Meranti has partnerships with companies in Australia, Europe, North America, and the Middle East. Its Offtake Partners in Europe will begin importing steel from Meranti’s new Thailand green steel plant between 2028 and 2029. Additionally, Meranti Green Steel exports hot-rolled steel coils to downstream industries in Vietnam, which are further processed and exported to Europe.

(Meranti Green Steel team members together with their key partners at Partners Appreciation Dinner)
(Meranti Green Steel team members together with their key partners at Partners Appreciation Dinner)
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Mr. Sebastian expressed his aspiration for Thailand to become a “global destination” for sustainable investments within a green ecosystem. He stressed the significant economic cost of climate change, estimated by the World Economic Forum to range from $1.7 trillion to $3.1 trillion, affecting future generations. Southeast Asia is already experiencing severe impacts, such as floods and typhoons, with last year being the hottest on record. The concentration of greenhouse gases has risen by 20% in just 30 years, highlighting the urgent need for long-term solutions.

“Our goal is to build the first green steel factory in collaboration with Thailand, Southeast Asia, and the world, upcoming carbon tax in Thailand will create significant economic opportunities, not just costs, for the country” 

Mr. Sebastian said.