CSC to expand output of high-price steel products

Taipei, April 7, 2005 (CENS)--China Steel Corporation (CSC), Taiwan's largest integrated steel manufacturer, has resolved to invest NT$7 billion (US$222.22 million at US$1:NT$31.5) to expand production of steel slabs by adding a progressive casting machine, the seventh of its kind installed by the company.

CSC said the installation of the seventh progressive casting machine will help it break through a production bottleneck. The company said the production expansion is designed to counter the drastic change in the global steel market and go in line with the renovation of its No.2 blast furnace for increasing output of rough steel.

The production expansion is expected to help CSC bring in an additional production value of NT$20 billion (US$634.92 million) per year.

CSC executive vice president Chen Yuan-cheng noted his company has invested more than NT$30 billion (US$952.38 million) in retooling production equipment over the past three years to broadly develop such high-value-added product lines as hot-dip galvanized steel, electromagnetic steel sheets and electric-galvanized steel sheets. Chen said these high-value-added products would help his company tap the markets for automotive metal sheet, motor, transformer, and air conditioner worldwide.

Currently CSC is building up two new production lines, including an electromagnetic steel sheet production line with annual output of 200,000 metric tons, and a hot-dip galvanized steel sheet production line with annual output of 300,000 metric tons. The company estimated the new hot-dip galvanized steel sheet production line will be completed by the end of next year, and that for the production of electromagnetic steel sheets will be completed in July 2007.

At that time, CSC will be able to double its production of steel plates for the automotive industry, and its annual output of electromagnetic steel sheets will soar 30% from present production levels.

According to a survey conducted by CSC, Taiwan currently demands 460,000 metric tons of electromagnetic steel coils and hot-dip galvanized steel sheets per year. Although CSC is capable of rolling out 620,000 metric tons per year, it exports half of the output to mainland China, thus making Taiwan suffer a shortfall of 150,000 metric tons, which should be sourced from Japan.