Page 13 - Annual report eng 2019

Tycoons Worldwide Group (Thailand) Plc.

Production capacity, quantity and utilization rate in the year 2017- 2019

2019 2018 2017
Full production capacity (Unit: Ton/year)

- Wire rod 360,000 360,000 360,000
- Annealed wire 142,000 144,000 144,000

- Screw 28,514 28,514 28,514
- Bolt 36,000 36,000 36,000

Real Production (Unit: Ton/year)
- Wire rod 283,051.37 286,357.56 249,731.95

- Annealed wire 88,174.33 108,784.58 113,293.68
- Screw 6,412.52 11,573.40 9,984.21
- Bolt 35,079.68 41,963.78 35,638.77

% Utilization rate
- Wire rod 78.63 79.54 69.37

- Annealed wire 62.09 75.54 78.68
- Screw 22.49 40.59 35.02
- Bolt 97.44 116.57 99.00

2. Raw material

Billet and wire rod
TYCN purchases raw materials mainly from TY. In 2019, 65% of raw materials were
from TY, while 35% were mainly from China. With advanced manufacturing process, TY
is capable to produce not only regular low carbon billets but also low alloy billets of high
quality, which meets TYCN’s high standard and enables TYCN to produces industrial steel
products and reinforcing bars in accordance with new TISI’s standard announced in
December of 2016.

3. Risk factors

3.1 Sales risks

3.1.1 Global economic situation

Steel consumption is closely related to economic growth because economic growth
influences industries that consume steel such as construction, automobile, and endurable
goods. The global economy has recently been in recession, and demand for steel has
been weak. The stagnation of demand is likely to make a negative impact on TYCN’s
revenue and profit. According to the forecast from IMF, global GDP growth rate will
be 3.6% in 2020, which higher than 2019. However, that is not high enough, and there
are lots of uncertainties around the world such as in early 2020 the outbreak of a new
corona virus (COVID 19), geopolitical conflicts, Brexit, Trump’s new policies,
protectionism, the U.S. and European monetary policy .. etc.

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