Beijing's recent economic stimulus package has helped revive Sahaviriya Steel Industries' (SSI) exports of steel products to China.
The company's exports account for 10 per cent of its revenue. SSI's major export markets also include countries in the Middle East.
The Chinese stimulus package has boosted domestic spending, which directly encourages demand for more imported goods.
China is now ranked as the world's biggest auto-maker with production of 10 million vehicles in the first quarter.
SSI president Win Viriyaprapaikit said increased exports to China had fuelled the company's export growth to 10 per cent this year.
He added that the company had exported thousands of tonnes of steel to China in the first quarter.
Between 2003 and 2005, China's steel-manufacturing capacity grew rapidly, which moved it from being a steel importer to an exporting nation.
As a result, SSI's exports to China had been suspended.
However, the global economic crisis has turned the country into an importer again.
China resumed importing steel earlier this year. Last year, it exported a total of 60 million tonnes. Previously, China imported 35 million tonnes of steel products annually.
Win said that due to strong profits in the first quarter and projected better operational results for the remainder of the year, SSI would write off an accumulated loss totalling |Bt1.8 billion.
He pointed out that steel prices had hit bottom and were now beginning to rise.
Win added that the government's economic stimulus package totalling Bt1.43 trillion should focus on green projects such as those involving alternative energy.
"The government should lay out which projects it will give financial support to. They should be backing innovative technologies and also be environmentally friendly," he said, adding that it should also include technology transfer when awarding contracts for its mega-projects.
However, so far, the government has not imposed any requirements to help Thailand to become a technology developer rather than an importer of technology.
Source: Nation Multimedia
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