Economic Sustainability Management

Economic Sustainability Management

Impact Management to Stakeholders in the Business Value Chain 

The Company puts emphasis on the impact management to stakeholders in the business value chain, beginning from the upstream to downstream activities to drive the operations for sustainability and to mitigate risks from business operations relevant to sustainability matters. Activities and target groups have been analyzed, the participatory engagement process has been created and hopes of the organization’s stakeholders has been responded as follows: 

Business Value Chain

Primary activities of the Company consist of:

1.Raw Material Procurement

The Company has carefully managed its procurement of raw material, which is slab, in order to achieve required spread between selling prices and raw material prices with proper quantity. Without obligation to purchase raw material from any specific supplier, the Company has entered contract or agreement to keep raw material distributors or manufacturers informed in advance about its demand, both on annual and/or quarterly basis, to reduce risks from shortage of raw materials and for adequacy for production to meet the customers’ requirements. The Company also seeks for additional sources of raw materials which have high quality, suitable price, adequate amount and ability to deliver at short time notice.

2.Product Manufacturing

The Company has implemented the modern technology in the manufacturing of hot-rolled coil and has procedures on improvement of manufacturing process, preparation, and review of inventory management plan to ensure that spare parts will always be available for usage at all time for maximum efficiency on manufacturing. Quality can be controlled and manufacturing process can be improved on time when the products do not meet the requirements to reduce the numbers of inferior products. In addition, automatic system has been used to manage quality of products in conforming to the customer’s application to reduce error decision made by the operators. The manufacturing process development working group has been appointed to analyze, plan, and improve the quality of works continually for the existing projects, and to create new projects to enhance efficiency, reduce manufacturing costs and improve quality on continued basis.

3.Sale and Marketing

The Company has supplied hot-rolled coils steel sheet to various industries, i.e., automobile industry, electric appliance industry, construction industry, and etc., and placed importance on all customer groups. The Company has arranged programs to maintain good relationship with the customers (Gold Partnership Program and Gold Plus Partnership Program) to reduce risks during the sluggish market conditions, and applied specific sales policy suitable for each customer, as well as monitored both domestically and internationally market situations, such as dumping and unfair trade of imported products, to analyze and consider for sales of goods in accordance with the purchase orders.  

4.Product Delivery

The Company has given precedence to the product transportation and has controlled its product transportation to ensure compliance with the laws and the customers’ requirements. The operations have been monitored by Bangsaphan Cargo Transportation Operator Association and Operation Control Center which operates 24 hours a day for monitoring cargo transportation trucks from the original to destination points, and for receiving complaints and recommendations from all stakeholder groups.

5.After-Sales Services

The Company provided the channels to communicate, receive complaint, suggestions, and feedback from the customers for improvement, rectification, and development of products and services. Customer satisfaction survey has been conducted every year. The obtained information has been used to analyze and figure out solutions on the issues that the customers placed importance to, and to provide knowledge and advises to customers in various matters.  

Stakeholder Analysis in the Business Value Chain 

Sahaviriya Steel Industries Public Company Limited puts an emphasis on business value chain and divided the stakeholders into 7 groups:  1) Shareholder and investor, 2) Customer; 3) Business partner; 4) Trade competitor; 5) Employee 6) Regulatory entity, and 7) Society and community. Any impacts to the stakeholders shall be managed by the Company’s responsible agencies. 

Stakeholders Analysis in the Business Value Chain in 2023

Materiality Assessment on Sustainability   

The Company conducted materiality assessment on sustainability and prioritized such matters which covered the review of present and future risks and business opportunity by considering from significant impacts toward business operations, expectation level of stakeholders, both within and outside the organization, to reflect the environmental, social, governance issues and effective value chain management.    

Innovation Development

Innovation Policy 

Innovation is an important key to enable the organization to compete in the markets. Sahaviriya Steel Industries PLC, the leading manufacturer of hot rolled steel sheet in coils in the South-East Asia Region, operates business by focusing on promotion on creation of innovation with respect to products, services, and work processes within the organization continually because it is believed that innovation management plays vital role for business operations. To maintain the stakeholders’ confidence sustainably, the Company has defined the innovation policy which conforms to the vision and mission as follows: 

“Innovate premium value steel product, service and market for customers and consumers;  

create sustainable shared value and trust for stakeholders” 

With objectives to achieve such innovation policy, the Company has the operation guidelines as follows: 

  1. Develop and create innovative products, services and processes which can add value to the organization, trade partners and the consumers continually,
  2. Develop sustainable shared value and confidence to the stakeholders,
  3. Stimulate and support the personnel in the organization to have innovative ideas on products, service rendering and processes throughout the organization.

The Company is committed to support an arrangement of effective innovation management system. This innovation policy will be communicated to the employees at all levels to make them aware and determine to improve and develop their potential on continued basis. 

Development of innovation management system and business innovation 

The process of innovation is crucial and must be systematically managed to maintain a continuous response to the competition. In this regards, the Company has embraced the idea of innovation management by implementing ISO 56002 innovation management systems since 2022 and was verified by a leading certification body, MASCI. SSI is the first hot-rolled steel sheet manufacturer in Thailand who has successfully passed the certification process and obtained the ISO 56002 innovation management system certification to create valuable products and services for customers and society. 

The Company has created a business innovation by initiating a One-Stop Service business that provides comprehensive services for various types of steel products. This innovation aims to support services and respond 

to customer needs quickly and completely, while also helping customers save time in choosing steel products from several suppliers. By offering a wide range of steel products and services in one place 

In addition, the Company has also expanded its business operation to include derivative steel products to broaden the range of available products. During the past year, the Company has 104 product units (SKUs) of derivative steel products, divided into 

  • Pipe and C-section are at 88 SKUs 
  • Derivative steel products are at 16 SKUs 

SSI plan to develop products & business to One-Stop Service of steel business, and aims to increase product units are at 200 SKUs for supporting services and respond to customer needs quickly and completely. 

Innovate premium value steel product 

To raise the quality of products to fully meet the needs of customers. As the leader in the steel market High quality hot-rolled coil The Company continues to develop products. The Company has defined new product definitions as follows: 

  1. SSI Principal Products (SPP): SSI’s core product whose design, manufacturing, and quality control are

(1) Superior to products under general industrial standards; or 

(2) Specific for certain applications or industry market segments. 

  1. Innovated Value Products (IVP): SSI innovative products whose special designs and quality controls are distinct from SPP with the addition of special optional features (Premium Feature) or special customization (Customized Products).

In 2022, the Company delivered total of approximately 1.05 million tons including SSI Principal Products 21.9% and Innovated Value Products 78.1% 

Innovative Product Development Working Group has conducted activities to analyze customer needs and corporate with the production department to create value-added products and services to customers. In 2022, the Company has launched 14 new products and services such as; 

  1. Expanded Steel
  2. Base Plate products
  3. Corrosion resistant hot-rolled steel sheet for use in construction industry (Weathering Steel)
  4. Hot-rolled steel grades A414G and A455 for used in gas cylinder industry
  5. Hot-rolled steel coil grade SAE1049 suitable for hardening and manufacturing chain gears (Sprocket) in the automotive industry for two wheel segment
  6. HRC Trimmed Edge products for customers who use steel plates that require precise widths
  7. Hot-rolled steel that has a special feature to control the thickness deviation of the steel plate (TOL40) to reduce loss in the production process of customers, etc.

For supporting the government’s policy about xEV electric vehicles (hybrid, plug-in hybrid, EV, fuel cell), the Company has developed High Tensile (Tensile 650 MPa) for the automotive industry, the product offering lightweight materials and lighter body for vehicles. SSI is also developed strength of steel up to Tensile 780 MPa and supporting the government’s machinery industry development policy, which will lead to driving economy and create demand for more steel consumption.