Suntech Recycle & Decarbon Co, a subsidiary of Millcon Steel Plc, aims to recycle 36,000 unwanted cars a month in 2023 under Millcon's plan to replace expensive steel imports with recycled steel.
The recycling capacity at its factory in Rayong currently stands at 15,000 vehicles a month.
"We are using only 40% of recycling capacity and will increase it to 100% next year," said Tawan Boonyawat, chief executive of Suntech.
Millcon is carrying out an end-of-life vehicle (ELV) management project through Suntech after it diversified into the steel recycling business.
Suntech is getting support from the Industry Ministry, which wants to deal with a large number of unwanted cars in Thailand.
Suntech also imports ELVs from many places such as Australia, Japan, South Korea, and Latin America.
Many parts of ELVs, including steel, copper and plastics, can be recycled, while hazardous waste from car scrap can be turned into refuse-derived fuel for power plants, according to Millcon.
Steel from the recycling process is less expensive than imported steel, prices of which have increased largely as a result of the Russia-Ukraine war.
Global steel prices have increased by more than 20-30% since the war.
Suntech said it sees a bright future for the recycling business in Thailand, with around 10 million cars which have been on the road for over 10 years.
In addition to ELV recycling, Suntech's factory can also recycle electric vehicle batteries and solar cell panels.
Millcon earlier announced that it expects to conclude a new deal with partners in the fourth quarter to jointly develop recycling businesses to add value to scrap.
The company is in talks with 4-5 foreign companies, mostly from Japan, over the joint venture, according to Pravit Horungruang, chief executive of Millcon.
The recycling business has been growing, driven by the global trend of reducing the carbon dioxide generated by manufacturing, said Mr Pravit.
Millcon expects revenue this year to reach 20 billion baht, with up to 900,000 tonnes of steel products sold.
