Tata Steel Thai unit says furnace project delayed
BANGKOK, April 29 (Reuters) - Tata Steel (Thailand) TSTH.BK, the country's biggest steel bar producer, said on Tuesday its mini blast furnace project would be delayed and cost slightly more than expected.
The unit of India's Tata Steel (TISC.BO) raised the project budget to 3.8 billion baht ($120 million) from an earlier 3.4-3.6 billion baht, the Thai firm said in a statement.
The furnace project, operated by 99.66-percent owned subsidiary N.T.S. Steel Group, was expected to be completed in second quarter of 2009 instead of the third quarter of 2008.
The company blamed construction delays.
Analysts have said the furnace should boost earnings growth at Tata Steel because it would allow the firm to produce high-margin premium grade products such as high-tensile steel/coil for automotive industry.
Late on Monday, the company reported a 281 percent rise in net profit of 2.7 billion baht for its financial year ended March, thanks to surging steel prices.
At 0315 GMT, Tata Steel shares were up 3.4 percent at 2.44 baht, while the main Thai index .SETI rose 0.23 percent. The stock doubled in the last 12 months. ($1 = 31.65 Baht) (Reporting by Khettiya Jittapong, Editing by Darren Schuettler)
