YUSCO Increases Cold Rolled Stainless Sheet to 2.5 Million Tonnes in 2010

Yieh United Steel Corporation (YUSCO), Taiwanese largest stainless steel maker, expects its cold rolled stainless steel production increases by 50% to 2.5 million tonnes at Taiwanese plant and Chinese subsidiary in 2010. Chinese subsidiary’s production is forecasted to reach 1.6 million tonnes thanks to growing demand in China. Taiwanese plant’s output is estimated at 900,000 tonnes along gradual demand growth in the country. YUSCO plans to increase the production more in 2011 to follow market growth in China and high export from Taiwan to Southeast Asia and Japan.

Chinese subsidiary introduced no.2 cold rolling mill at the end of December 2009 and doubled the production capacity to 2 million tonnes per year. The plant is especially increasing output of 200 series stainless sheet. The plant is enjoying healthy sales growth thanks to many customers in Guangdong and no local major competitor in the region.

YUSCO’s non-integrated capacity is 1 million tonnes per year in Taiwan. YUSCO’s executive said domestic demand is moderately increasing but YUSCO is slightly decreasing output in July-December 2010 to balance the supply and demand. The production is planned to increase by 100,000 tonnes to 900,000 tonnes in 2010, the level almost as high as pre Lehman’s fall. Taiwanese plant is increasing the export mainly for Southeast Asia. The export ratio is reaching 50% in 2010 from 35% in 2009. YUSCO presently has no next plans for capacity expansion to raise the operating rate to full 3 million tonnes.