ENVIRONMENTAL COMMITTEE
SAEISI Environmental Meeting 2012
Country Report of Thailand
Dr. Decha Pimpisut
Director of Air Pollution Division
Bureau of Industrial Water and Environmental Technology
Department of Industrial Works, Ministry of Industry, Thailand
pdecha@yahoo.com
----------------------------------------------------------------------Introduction
The steel demand the world in 2011 is expected to be 1,398 million tons, a new
highest record after 1,222 million tons in 2007. In next year, the world steel association
predicts that demand will rise continually to 1,474 million tons. The major consumers
are China, EU and North America which was expected to consume 683, 127, and 159
million ton in 2012. Thailand steel demand also predicted to rise approximately 14.7
million ton in 2011, jump by 5% from 2010. It’s expected that consumption rate would be
increased to nearly 20 million tons, the highest rate among ASEAN countries of total
73.8 million tons, in 2015. New investment in manufacturing sectors, including
automotive, home appliance, electronics, machinery, will drive Thailand steel demand
with significant growth rate during next five years. Nevertheless, the iron and steel
products consumption per capita is considerably low, 204 kg/capita/year when
compared to developed countries such as Japan 601 kg/capita/year, Germany 473
kg/capita/year and United States 278 kg/capita/year.
The flow diagram of steel making process in Thailand as illustrated in Figure 1
reveals that now there are two process routes for Producing the liquid steel before
casting; mini blast furnace – electric arc furnace route and electric arc furnace route.
The electric arc furnace route is widely used in Thailand using steel scrap as main raw
material. The steel scrap is mlten using electric power as source of energy and then
liquid steel is brought to continuous casting machine for producing the Billet, Bloom and
Thin slab. At present conventional slab is not proced in Thailand.
Figure 1: Schematic diagram for iron and steel production
Sources: the Office of Industrial Economics, Ministry of Industry, Thailand.
-2Then, the factors that may have an impact on the steel and related industries and
may affect their environmental decision-making or performance can be summarized as
follows:
1. External Influence
a. Regional
The factors that may have an impact on the steel and related industries of
this region and may affect their environmental decision-making or performance can be
discussed as follows;
(1) Influence of the Ratification of “Kyoto Protocol”
Since almost all of ASEAN countries were ratify to the Kyoto protocol, effective
on 16 February 2005. Greenhouse gases emitted from using of fuel for energy is the
key issue and the iron & steel manufacturing plants are considered as an energy
intensive sector. Then, manufacturers may face the pressure from public to use energy
more effective in order to reduce effect on climate change, the crucial topic nowadays.
But, the period of Kyoto Protocol will be valid in 2012 that not clear how to do in this
way.
(2) Free Trade Agreement (FTA) in Asia.
There are several initiatives in Asia dealing with FTA either in term of trade area
to individual country such as ASEAN-China, ASEAN-Korea, ASEAN-Japan or country to
country such as Thailand-Japan, Thailand-Australia. The FTA may effect the iron &
steel industry in terms of lower cost of raw materials for importers but, on the other
hand, manufacturers might have to improve their productivity and introduce new
technology for cost effective in production processes to maintain their competitiveness.
(3) China’s Policy on exporting raw materials for steel making and intermediate
steel products
In recent year, China has set policy on exporting raw materials for steel making
and intermediate steel products, which affected on supply side of intermediate steel
products in world market. The policy also affected cost effectiveness for Thailand steel
industry, which relied on cost of imported intermediate steel products. Moreover, China
also support high quality steel products and drive merging of existing factories in order
to make more effective on steel producing. The policy also limit coal and water
consumption in steel making plants not more than 0.73 ton and 8 ton per ton of product
within 2010 and 0.7 ton and 6 ton per ton of product within 2020 respectively.
(4) Thailand Steelmaker take aim at China’s alloy steel exports
The Thai Steel industry is being adversely affected by rising imports of alloyadded hot rolled steel products from China. These imports are unfair for the Thai steel
mills because these alloy added products are being used in same applications are mild
steel product with zero import-duty (normal 5% duty).
Thailand Industrial Standards Institution has been alerted to problem by
conducting more inspection.
(5) ASEAN Economic community (AEC)
The ASEAN Economic Community shall be the goal of regional economic
integration by 2015. AEC envisages the following key characteristics:
(a) A single market and production base,
(b) A highly competitive economic region,
(c) A region of equitable economic development, and
(d) A region fully integrated into the global economy.
-3Therefore, Iron &Steel companies should improve feasibility of own about
production process, product and human before 2015.
(6) Rio+20
The movement of all parties to push world development in to Green Development
might have some impacts on steel industries
b. National
b1. Policy and Legislation
New and emerging environmental policies, legislations, regulatory control levels
and any other factors that are the concerns of the steel and related industries can be
summarized as follows;
(1) Ministry of Industry issued a new Notification on Industrial Solid Waste
Management
Ministry of Industry by the Department of Industrial Works has adopted the
Ministerial Notification on December 27, 2005 to reorganize the industrial waste
management. The notification, which was effective 3 months later, aimed to clarify the
duties of waste generator, transporter and processor, and final disposer. The liability of
each concerned party has been indicated. Manifest and reporting systems were
strengthened.
(2) Ministry of Industry Supported the Establishment of Primary Processes for
Iron & Steel Industry
In 2003, the Iron & Steel Industry of Thailand studied “Restructuring of Thailand’s
Iron & Steel Industry”. The study, commenced by Mckinsey company (Thailand),
recommended the government to support the industry on the establishment of primary
processes to produce raw material for the following processes, which were affected by
the fluctuation of cost and quantity of the imported raw materials. Then, the Ministry of
Industry through the Board of Investments has awards of three projects namely;
(a) NaKhon Thai Strip Mills co.ltd. produces 1.5 million tons/year of sponge iron
located in the Eastern Sea Board area
(b) G Steel (Public Company) produces 2.65 million tons/year of pig iron
(c) Sahaviriya co.ltd. produces 30 million tons/year of pig iron located in
Bangsaphan, Prachuapkirikhan province. The project is submitting EIA report
of the first phase to the Office of Natural Resources and Environment Policy
and Planning (ONEP) for approval.
In addition, Primary Processes for Iron & Steel Industry are also being promoted
by Thai government in order to recruit high quality steel support target industries i.e.
auto industry, appliance, electrical and electronic industry. Four investment groups are
interested in settle up primary steel process in Thailand namely JFE Steel, Nippon
Steel, Acelor Mital and TATA Steel group. Ministry of Industry is working for site
selection through Strategic Environmental Assessment (SEA) under the Institute of
Steel and Iron of Thailand (ISIT). It was expected that within this fiscal year, project
design of selected site shall complete and on the way for approval from the Cabinet.
All projects will affect the recruitment of raw material in both quantity and cost to
the middle and downstream processes in Thailand.
-4b2. Guidelines/codes of practice.
Major environmental guidelines or code of practices which may impact on the
steel and related industries is the Department of Industrial Works provided
Environmental Management Guidelines for pickling processes in steel industry.
In 1999, the Department of Industrial Works in cooperation with Thai-German
Technical Office (GTZ) studied and set up Environmental Management Guidelines for
Steel industry - pickling processes. The guidelines provided the information of pollution
sources and technologies for treatment, reduction, reuse/recycle of waste in get rid of
rust in material preparation processes. The guideline also recommended regulatory
agencies to set up new emission and effluent standards in order to motivate the
pollution prevention scheme.
In 2011, Iron & Steel Institute of Thailand (ISIT) has conduct Safety Guideline for
Thailand Steel mill.
b 3. Reduction measures and programs.
Major programs, sponsored through government, the national and/or local
regulators, to reduce emissions from industrial processes, reduce environmental
burdens or the impact of emission on health or the eco system can be summarized as
follows:
(1) Trend in Waste Management and Recycling Regulations
The Department of Industrial Works has identified the commercial shop for
recycling materials as factory type 106. The waste stream for all types of waste were
then in control. The owner of factory type no. 106 has to obtain permission from
Department of Industrial Works before transporting the reuse/recycle materials to iron &
steel plants. With this regulation, the recycle rate shall increase along with the quality of
waste that might need lower energy consumption to make a new product.
(2) Promotion of Eco-Industrial Parks
The Industrial Estate Authority of Thailand supported by GTZ has initiated the
eco industrial estate projects in many industrial estates during 2001-2004. The projects
introduced the waste exchange and waste utilization within and outside the estates.
With this approach, the recycle rate should increase and the environmental impacts
should decrease while the competitiveness of enterprise shall increase through cost
saving.
(3) Promotion of Sustainable Development for Thai Industry
The Department of Industrial Works has set up its goals to promote the
sustainable development among Thai industry. The activities implemented include
Cleaner Technology, EMS for SME, LCI/LCA and cooperation projects with developed
countries i.e. Japan and Germany. The Management Information System (MIS) for
Industrial Pollution Prevention and Control under Eco-efficiency component of ThaiGermany Project is the example project that employs the MIS for supporting the
-5industry for their sustainable development. Other tools that support sustainable
development in the enterprise are also promoting among Thai industry.
b.4 The Ministry of Industry has launched the Green Industry Project as a
flag ship project since 2000. The project aimed to encourage the industry to apply for
Green Industry Mark (GI mark) which divided in to 5 levels namely commitment,
activities, system, culture and network. This project might enforced the steel plant to use
more environmental sound technology to prevent the environmental impact.
c. Public, Non-government organizations (NGOs), Pressure groups.
The current main environmental concerns of the public, NGOs and pressure
groups and how these groups interact with industry, government and regulators (e.g.
direct action, stakeholder forums, etc.). Particularly, issues that have arisen between
steelworks and local communities are air pollution and waste disposed from industry
that may affect their living environment. International, green peace, and local NGOs are
actively involved in any development in Thailand especially major industry projects.
Recently, there were protests against power plants in Prachuapkirikhan and Saraburi
province. The regulatory agencies have decided to integrate the Survey of Public
Perception in to Environmental Impact Assessment Processes. Then, all NGOs and
leaders of communities nearby the factories can share their view through this process.
Moreover, Thailand’s Constitution B.E 2550 (2007) Clause 67 paragraph 2 under
human rights subject also requires all projects that might cause major harmful to
communities in term of natural resources, environment and health to make
comprehensive study of EIA, HIA and EHIA, have public participation and have
independent organization on health and environment review before permitting. This
Clause also allow public to have right to sue government agencies to act follow this
Clause. This subject might cause more active involve in any development in Thailand
especially major industry projects, which upstream steel making project is one of the
projects that have to strictly follow this regulation.
Specific environmental incidents that have occurred both within or external to
the steel and related industries that have drawn the attention of the above groups is
social responsibility of the enterprise (Corporate Social Responsibility: CSR). The issue
can make the neighborhood living together peacefully.
It is widely accepted
among major industries in Thailand.
d. Surveys, Studies and forecasts.
The surveys, studies or forecasts carried out by government organizations,
regulators, academia, pressure groups or other parties concerning emission trends,
environmental burdens or the impact of emission on health or the eco system can be
summarized as follows:
(1) Pollution Control Department developed an Emission Inventory of
PCDDs/PCDFs for Enabling Activities of a National Plan for Implementation of the
Stockholm Convention on POPs in Thailand.
In 2005, the Pollution Control Department developed the emission inventory of
PCDDs/PCDFs in Thailand. The annual release from Ferrous and Non-ferrous metal
-6production were found 19.776 g I-TEQ to air and to 98.77 g I-TEQ residue, which
accounted for 7% and 12.99% of total release respectively.
(2) Iron and Steel Institute of Thailand studied energy used in Thai’s steel
industry.
Assawadornviset studied the using of energy in the Steel Industry in Thailand.
The study led the industry to improve their productivity and reduce environmental
impact in using less energy. In the same time, reduction of energy used and
environmental impacts can lead to cost reduction as a whole.
(3) Office of Industrial Economics studied Benchmarking for Competitiveness
of Thai Industry
In 2009, the Office of Industrial Economics studied the competitiveness of
Thailand iron & steel industry through benchmarking concept. In the study, four indices,
Productivity, Efficiency, Asset Utilization, and Financial Ratio were adopted and World
Best Practice was used for benchmarking. Sustainable development index through
environmental index was also studied.
Sources: the Office of Industrial Economics, Ministry of Industry, Thailand.
The project will impact the iron & steel manufacturing in Thailand to
increase their performance to be competitive in the World market.
2. In the Steelworks.
a. Overview.
The new factors, decisions or directions of the steel companies which
have had or may have an impact on operations or may affect environmental decision
making or performance (e.g. profitability, technology/product strategy, restructuring,
rationalization, expansion, etc.) can be summarized as follows;
a 1. More Attention on Social Responsibility of Industry
CSR is a form of corporate self-regulation integrated into a business model. CSR
policy functions as a built-in, self-regulating mechanism whereby business monitors and
ensures its active compliance with the spirit of the law, ethical standards, and
international norms. The goal of CSR is to embrace responsibility for the company's
-7actions and encourage a positive impact through its activities on the environment,
consumers, employees, communities, stakeholders and all other members of the public
sphere.
a 2. Efforts on the Pollution Prevention
The sustainable development between industrial and communities is a goal of
Eco- model that model use the clean technology (reduce, reuse/recycle, treatment and
disposal) for decrease pollution/waste/raw material. Presently, Iron and steel production
try to use eco-model to develop the process such as reheating, change type of fuel, etc.
b. Process stages.
Major developments including new plant, pollution control measures/plant,
measurement programmes, reduction programmes, problems, incidents, future
strategies etc. by process area are;
According to Environmental Impact Assessment, all plant has to set up the
reduction of environmental impact and monitoring programmes. Sahaviriya group
company, for example, not only follow the reduction of environmental impact and
monitoring programmes but also integrate cleaner technology concept in to the
Environmental Management system (EMS) –ISO 14001.
3. Special Topics
a. R&D activities
(1) Recycling Technologies for EAF dust
Thailand has 72,000-90,000 tons EAF dust (red dust) are generated per year
according to ~5 million tons steel production (survey (2010): from 14 steel mills). Iron &
Steel Institute of Thailand (ISIT) are also being study about the suitable technology to
recycle EAF dust. Considerations for Recycling Technology Suit Thailand as follows;
- Financial investment,
- Operation cost/Consumptions,
- EAF dust volume in Thailand,
- Environmental impact /Energy saving,
- Products quality, Reliability of the process
(2) Slag to fertilizer
Application of iron and steel slag to use in agricultural products has been studied
by ISIT. Since considered amounts of silicon in slags found to be useful as plant
nutrients, the slags appear to be a promising and extensive source of silicon using as
fertilizer.
b. New development
One Iron and Steel company, in Chonburi, changed the old arc furnace to Shaft
furnace Technology that supported by NEDO, Japan, for reducing the electrical power
consumption and hazardous waste handling costs.
References
1. Sahaviriya Groups, 2005. Iron & Steel Making Project for Thailand.
Presentation materials for the Board of Investments of Thailand, Bangkok,
Thailand.
-82. Office of Industrial Economics, 2005. Summary report for Minister of Industry
in discussion with Sahaviriya Group. Ministry of Industry, Thailand.
3. Iron and Steel Institute of Thailand, 2002. Feasibility Study of Setting up the
Upstream Iron & Steel Making Project for Thailand. Prepared by Materials
and Metallurgy Institute, Chulalongkorn University, Thailand.
4. Assawadornviset, K., 2006. Energy use in the Steel Industry in Thailand. Iron
and Steel Institute of Thailand, Bangkok, Thailand. http://www.isit.or.th
5. Department of Industrial Works, 1999. Technical Guideline for Environmental
Management - Raw Material Preparation Processes in Intermediate and
Downstream Iron & Steel Production. Ministry of Industry, Thailand.
6. Bureau of Information and Communication Technology, 2006. Factory
statistics. Department of Industrial Works, Ministry of Industry, Thailand.
7. Department of Trade Negotiations, 2006. Free Trade Agreement(FTA).
Ministry of Commerce, Thailand.
8. Department of Industrial Works, 2005. Ministerial Notification on Industrial
Solid Waste Management B.E. 2548 (2005). Ministry of Industry, Thailand.
9. Department of Industrial Works, 1999.
Environmental Management
Guidelines for Steel Industry - Pickling Processes. Ministry of Industry,
Thailand.
10. Industrial Estate Authority of Thailand, 2004. Development of Eco-industrial
Estate and Network; DEE+Net Project. Ministry of Industry, Thailand.
http://www.ieat.go.th/
11. Pollution Control Department, 2005. Inventory Development for Sources and
Releases of PCDDs/PCDFs Production and Estimation. National Focalpoint
for Stockholm convention, Ministry of Natural Resources and Environment,
Thailand.
12. Office of Industrial Economics, 2005. Benchmarking of focused industries in
Thailand. Ministry of Industry, Thailand.
13. Sahavriya Industry (Public Company), 2006. Summary Report for
Environmental Protection Award from the Ministry of Industry. Bangkok,
Thailand.