CSC to invest NT$46 B. to set up blast furnace in Taichung Harbor area

Taipei, Dec. 24, 2003 (CENS)--China Steel Corp. (CSC), Taiwan's largest steel manufacturer, recently submitted an NT$46 billion (US$1.35 billion at US$1:NT$34) investment project with the Taichung Harbor Bureau under the Ministry of Transportation and Communications to set up a blast furnace in the Taichung Harbor area for its affiliate--Kuei Yi Industrial Co., Ltd.

If the investment project is approved, CSC and Walsin Lihwa Group together will invest a total of NT$66 billion (US$1.94 billion) in the Taichung Harbor area, the largest investment project after the Germany-based Bayer Group called off an NT$50 billion (US$1.47 billion) investment project a few years ago.

Walsin Lihwa has proposed to invest NT$20 billion (US$588.23 million) to set up a stainless-steel plant in the area by renting a land lot of 70 hectares. The proposed plant will have an annual output of 1.5 million metric tons of stainless steel and rolled steel.

CSC plans to help Kuei Yi set up two blast furnaces near the existing plant site of Kuei Yi in the Taichung Harbor area, which will be completed in 2009 with an annual output of 3.6 million metric tons of rough steel. The proposed plant is expected to have an annual sales of NT$40 billion (US$1.17 billion).

Lin Wen-yuan, chairman of CSC, said the Kuei Yi investment project still needs a further assessment on whether to set up a small blast furnace or two. The proposed establishment of the blast furnace launched by CSC has been listed as one of the major investment projects by the Executive Yuan.

Besides the investment projects launched by CSC and Walsin Lihwa, the state-run Chinese Petroleum Corp. (SCS) also plans to invest NT$20 billion (US$588.23 million) to set up a natural gas receiving station in the Taichun Harbor area. The CPCs' investment project is expected to be finalized in the beginning of next year.