Taiwan's CSC Group Zeroes in on Wind Energy Boom

With the Taiwanese government promoting offshore wind power generation, China Steel Group, a major steel conglomerate on the island, is zeroing in on the huge market to secure new grow driver for the future.

Tsou Juo-chi, chairman of China Steel Corp. (CSC), the group's flagship company, noted earlier that the government aims to build 600 offshore wind turbines before 2015, calling for construction cost of NT$800 million per unit to create a lucrative emerging segment for the domestic market for steel totaling  approximately NT$480 billion. To tap the business opportunity, Tsou emphasized, the group will venture into different wind power-related businesses depending on affiliates' core competencies.

For instance, CSC has set up a wind power business led by the president Andrew Sung, as well as several new departments administered by the new venture.

Institutional investors indicated that since CSC boasts world-caliber iron and steelmaking technologies to lead domestic peers, metal construction materials specifically for offshore wind turbines, which generally call for stronger protection against rust and corrosion, fit perfectly as niche for the steelmaker.

CSC stressed that exploring the market for wind power is part of China Steel Group's renewable energy development strategy,which is expected not just to enhance the group's overall performance, but also help accelerate development of Taiwan's wind turbines and  support industries, such as installation vessels and marine construction equipment.

To better prepare to enter the segment, CSC has regularly  dispatched engineers to developed nations worldwide over the past years to learn current knowledge and technology, and seek potential technology transfers from the U.K., Sweden, Denmark and Japan.

Market observers pointed out that the Bureau of Energy under Taiwan's Ministry of Economic Affairs has been supporting local private companies to develop several model offshore wind farms off Taiwan's eastern coast, with CSC involved in one situated in Miaoli County, central Taiwan, to install 30 wind turbines.

Another potential beneficiary of  the renewable energy boom being enjoyed by China Steel Group's affiliates is China Steel Structure Co., Ltd., the biggest steel structure supplier in Taiwan by size, who is also tapping the segment. (SC)