China Steel Corporation Will Develop High-grade Steel Products to Be Profitable

China Steel Corporation (CSC), Taiwan’s largest integrated producer of steel products, will develop high-grade steel products to be profitable, rather than compete with rivals from China, Japan and South Korea to raise capacity. Reiterating the above strategy, CSC’s newly-appointed president J.Y. Sung says the company will build a “Great Wall of Steel” by linking its production bases in Taiwan, Vietnam and India. From now to 2015, CSC will invest some NT$240 billion to develop itself into a small but profitable, benchmark steel mill. Sung says high-grade steel accounted for 38% of CSC’s total output in 2011 and the ratio will rise to 43% this year. With the increased output of high-grade steel products, the company will see sales increase by NT$1.6 billion this year, with high-grade steel products to account for over 50% of total output by 2015. CSC has three plants undergoing construction, including the blast furnace built by its major subsidiary Dragon Steel Corp., a cold-rolled steel plant in Vietnam and an electrical sheets plant in India. The blast furnace will roll out crude steel that will be shipped to Vietnam for processing into cold-rolled steel to be sent to India to make electrical sheets for the local market, which procures 60,000 metric tons of electrical sheets from CSC yearly. Sung says CSC’s output accounts for a mere 1% of global steel production, but between 6% and 7% of global electrical sheets output. Source: cens.com