CSC Starts Construction of New Iron Works in Taiwan

China Steel Corporation, Taiwanese integrated steel maker, started the construction of no.2 iron works in Taizhong region of Taiwan. The firm held the groundbreaking ceremony on Friday in the plant of Dragon Steel Corporation, CSC’s affiliate company in Taizhong. The new iron works would start the operation at the end of 2009 with 2.5 million tonnes of crude steel output capacity per year.CSC planned the construction of the new iron works in order to cover iron source shortage for itself and group companies. Dragon Steel Corporation would actually lead the construction and operation of the iron works.As the first step of the plan, CSC will construct a blast furnace with 3,200 cubic meters of furnace capacity, two steel converters and one continuous slab casting. Total investment would become 78.8 billion Taiwan dollars for the first step of the plan.The new iron works will produce high-grade slab at 2.2 million tonnes per year at maximum to supply for CSC and Chung Hung Steel Corporation, CSC’s group company. The iron works will also produce and supply 300,000 tonnes of pig iron to Dragon Steel.CSC will start the second step of the project around 2009 and complete the construction within 2010s. No.2 iron works would finally have 5 million tonnes of crude steel output capacity per year.