CENS reported that China Steel Corporation 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 Mr JY Sung said that 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 TWD 240 billion to develop itself into a small but profitable, benchmark steel mill.

Mr Sung said that high grade steel accounted for 38% of CSC's total output in 2011 and the ratio will rise to 43% in 2012. With the increased output of high grade steel products, the company will see sales increase by TWD 1.6 billion in 2012, 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 Corporation, 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 tonnes of electrical sheets from CSC yearly.

Mr Sung said that CSC's output accounts for a mere 1% of global steel production, but between 6% and 7% of global electrical sheets output.

(Sourced from www.cens.com)