Tycoons Group Enterprise Co.'s chairman W.S.Huang noted that the firm's electric furnace in Thailand,costing NT$2 billion(US$66.67 million),is expected to be completed in the end of 2013,to remarkably reduce cost of raw materials and boost the firm's operation.
An institutional investor said despite the sluggish steel industry,the firm is still expected to be profitable in 2012 and expand product lines to include alloy steel and rebar after starting up the electric furnace.
Huang indicated that the firm's subsidiary in Thailand has benefited the parent company significantly.Currently,land is being prepared for the electric furnace plant in Thailand,which is expected to reach 500,000 tonnes in annual production capacity thanks to introduction of refining furnace and continuous casting machine,250,000~360,000 tonnes of which to be supplied to the firm's subsidiary in Thailand,and the rest sold locally or exported to Southeast Asia.
The firm's vice general manager S.H.Lin said the electric furnace will help Tycoons flexibly adjust product lines,as well as improve gross profit margin.
Institutional investors say due to improving economy and growing housing construction in the U.S.,Taiwan's exports of small screws in November have increased 10%from a month before,which will keep growing into the first quarter of 2013 to benefit Tycoons operation remarkably.
