The Industry Ministry has urged Prime Minister Prayut Chan-o-cha to lend full support to the country's upstream steel investment projects to help Thailand cut its steel imports, a major raw material for the auto industry.
Industry Minister Chakramon Phasukvanich said an upstream steel industry would be important to the country because it can produce quality steel, replacing expensive imported steel.
Thailand imports around 18 million tonnes of steel a year, mostly as a raw material for the car industry.
"If Thailand wants to support its own upstream steel projects, it needs to invest in building steel plants to produce higher quality steel to serve the automotive industry nationwide, which would help the country save a lot of money," said Mr Chakramon.
The National Economic and Social Development Board plans to propose a scheme to develop the country's upstream steel industry, submitting it to the cabinet for approval soon.
Atchaka Sibunruang, permanent secretary of the Industry Ministry, said the ministry was scheduled to hold a senior meeting soon on plans to develop the steel industry in order to find ways to advance the country's steel and automotive indus- tries.
In addition to the steel project, the ministry plans to promote the eco-town project that will support green industries in the future.
Ms Atchaka said the ministry asked the premier to lend support to a bioplastics project that would add more value to the country's agricultural products.
The prime minister reacted by saying the government had a long-term plan for 2014-16 to move the country forward in terms of industry productivity.
"There are several negative factors hurting the Thai economy at this time. Thailand needs to increase its competitiveness in order to survive in the world market," said Gen Prayut.