China Steel to pour NT$3 billion into new equipment

Taipei, Jan. 3, 2003 (CENS)--China Steel Corp., the largest steel maker in Taiwan, recently announced that it would invest about NT$3 billion (US$86.2 million at US$1:NT$35) in new production equipment over the next two to three years.

China Steel Chairman W.Y. Lin said that he expected the global market for steel to maintain favorable in 2003. The new chairman claimed that he would do everything possible to push 2003 profits higher than the pre-tax profit of NT$36.54 billion (US$1.05 billion) earned in 2002.

Lin said that his company plans to invest about NT$1.84 billion (US$52.87 million) on new equipment at a four-stage coke oven plant and about NT$1.08 billion (US$31.03 million) at a hot-rolled coil plant. This is the largest equipment upgrading project to be carried out by the company in recent years, he said.

According to China Steel, the scheduled new equipment at the coke oven plant can rapidly cool the coke ovens to 180 degree from 1,030 degrees and process 160 tons of steel per hour. Dust collection and energy recycling equipment at the plant will also be upgraded.

Hot-rolling production processes will also be improved with the installation of a new press-type edge-rolling equipment and width measurement machine. The new equipment is expected to shorten China Steel's delivery period and upgrade production capacity.

Chen Yuan-cheng, China Steel executive vice president, said one of the several factors behind China Steel's strong performance is that the company has been steadily reinvesting profits into new equipment since its establishment, enabling the company to reduce production costs.

Chen added that the new equipment project has been okayed by the board of directors. The first-stage of the plan will be completed by September 2005 and the second stage by July 2006, he said.