China Steel Eyes Special Steel Production at Dragon Steel

China Steel of Taiwan studies potential special steel production at electric furnace of Dragon Steel of the group. China Steel tries to shift higher valued products when the demand increases for automobile and manufacturers. The firm purchased Changzhou Xinzhong Precision Alloy Forging Products of China in August 2010 to start titanium nickel alloy and tool steel. The firm expands growth opportunity in special steel market when the demand increases in emerging countries.

The firm studied potential stainless production but the firm is reluctant to enter the market due to the lower profitability.

Dragon Steel has the electric furnace with one million tonnes of annual output capacity. The firm now makes mainly H-beam at the plant while the firm shifted the production from billet for concrete reinforcing steel bar to billet for high grade wire rod.

The firm expands the electric furnace’s output capacity to 1.4 million tonnes in 2014 by adding crane and improving the operation. The firm improves the products mix to follow growing demand for H-beam and special steel in emerging countries.