Singapore-based Meranti Green Steel has signed an agreement with Italy-based steel plant maker Danieli for a direct reduced iron-based plant to be set up in Thailand to manufacture “green” hot-rolled coils, Meranti Steel, the parent company of Meranti Green Steel, announced this week.

          The new steel plant will use “renewable energy solutions including solar and wind energy and green hydrogen supply,” Meranti Steel said.

          The proposed plant is expected to have a production capacity of up to 2 million mt/year of HRC and production is projected to begin over the second half of 2027.

          Meranti Steel had said it is exploring sites for the plant near Map Ta Phut port on Thailand’s Eastern Seaboard to optimize inbound and outbound logistics.

          Danieli said that Meranti’s new green steel plant will strengthen Thailand’s domestic steel production, and follows growing interest to develop and expand the steel industry in Southeast Asia, as shown by Vietnam’s Hoa Phat, Malaysia’s Eastern Steel and Japan’s Nippon Steel.