Feng Hsin of Taiwan Plans to Increase Steel Production by 30% in 2010

Feng Hsin Iron & Steel, a major electric furnace steel and concrete reinforcing steel bar maker headed in Taichung of Taiwan, plans to increase the annual production by 20-30% in 2010 from 2009. The firm’s official explained to Japan Metal Bulletin one reason is that the domestic demand for steel products has recovered in Taiwan and another is that Feng Hsin newly started the production of flat steel bar and thick-size special steel bar in 2009. The firm’s rebar production is expected to increase to 700,000-800,000 tonnes per year in 2010 while the sales would also increase for shape steel, special steel bar and wire rod used for machines.

Domestic demand for steel products has gradually recovered in Taiwan since July 2009. The sales for Taiwanese domestic market account for 95% in Feng Hsin’s total sales. The firm aims to increase the sales for constructions and machines this year.

Feng Hsin started the production of flat steel bar with width at 180-300 millimeters and high-tensile rebar of SD490 grade in 2009, when the firm’s operation slowed down. The firm also increased the size lineup of special steel bar to maximum 150 millimeters diameter from previous 13-110mm diameter. Special steel bar is generally used for bolts and printer shafts. The firm tries to supply thicker special steel bar for industrial machines.

Feng Hsin was established in 1969. The maker operates an 85-tonne DC furnace and a 70-tonne AC furnace. The crude steel production is approximately 1.3 million tonnes. The firm’s rebar production was 630,000 tonnes in 2009, decreasing by 4% from 2008, and the production of special steel bar and coil was 250,000 tonnes, down by 34%. Shape steel production also decreased in 2009. The firm’s rebar production was 780,000 tonnes and special steel bar and coil were 450,000 tonnes at the peak in 2007. The annual net sales were 37.76 billion Taiwan dollars (approximately 106 billion yen) in 2008.

Taiwanese rebar market was about 3.8 million tonnes per year in 2009, in which Feng Hsin’s share was 15%.