Page 13 - Annual report eng 2020

Tycoons Worldwide Group (Thailand) Plc.

process of annealed wire. Actual capacity will be lower, at approximately 108,000
tons/years, if it were produce over a single process of annealed wire.

Production capacity, quantity and utilization rate in the year 2018- 2020

2020 2019 2018
Full production capacity (Unit: Ton/year)
- Wire rod 360,000 360,000 360,000
- Annealed wire 108,000 108,000 144,000

- Screw 18,000 18,000 18,000
- Bolt 36,000 36,000 36,000

Real Production (Unit: Ton/year)
- Wire rod 253,800.69 283,051.37 286,357.56

- Annealed wire 68,256.64 88,174.33 108,784.58
- Screw 5,654.37 6,412.52 11,573.40
- Bolt 26,848.85 35,079.68 41,963.78

% Utilization rate
- Wire rod 70.50 78.63 79.54

- Annealed wire 63.20 81.64 75.54
- Screw 31.41 35.63 64.30

- Bolt 74.58 97.44 116.57

2. Raw material

Billet and wire rod
TYCN’s raw materials sources are diversified by countries such as China, Russia,
Oman, and Thailand.

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 5.5% in 2021, which higher than 2020. However, There are lots of
uncertainties around the world such as COVID-19, geopolitical conflicts, Brexit,
Biden’s new policies, protectionism, U.S. and European monetary policy etc..

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