China Steel to Expand Steel Output to 20 million tonnes by 2011

China Steel Corporation plans to invest 200 billion new Taiwan dollars under 5-year plan to 2011 to expand the production to annual 20 million tonnes. The firm also increases the high valued products rate to 50% from current around 35%. The firm tries to expand the corporate value and also to avoid hostile takeover. The firm builds integrated steel plant at the group company, Dragon Steel Corporation to expand the production volume. China Steel also constructs no.3 cold rolling mill and no.3 continuous galvanizing line at the parent company by 2011 to increase the value added products. Dragon Steel starts the no.1 blast furnace with 2.5 million tonnes of annual output capacity in December 2009 and no.1 hot strip mill with 3 million tonnes of capacity in June 2010. The firm also builds no.2 blast furnace with 3 million tonnes of capacity and steel making shop as the second phase. The firm’s raw steel output capacity increases to annual 6 million tonnes including existing electric furnace. China Steel itself expands the raw steel output to annual 11-12 million tonnes through revamping from current 10.4-10.5 million tonnes. The groups’ output increases to more than 20 million tonnes including 1.8 million tonnes of slab purchase from Sumitomo Metal Industries. China Steel builds no.3 cold rolling mill with 1.7 million tonnes of annual output capacity and no.3 continuous galvanizing line with 400,000 tonnes of capacity for 46 billion new Taiwan dollars. The capacity increases by 50% to 4.7 million tonnes for cold rolling and by 66% to 1 million tonnes for galvanizing after the investment. The firm starts the operation of no.2 electrical steel making line in October and renews the wire rod mill in September to expand the high valued products output.