China Steel to Increase CGL Capacity in Kaohsiung

China Steel Corporation increases the output capacity of continuous galvanizing line of steel works in Kaohsiung, Taiwan in 2011 to increase output of high grade product including automotive steel sheet. Dragon Steel, a subsidiary of CSC, has started the test run of new hot rolling mill to supply hot rolled coil to No.3 cold rolling mill of CSC, which starts the operation from February 2011 earlier than the original plan. The group’s steel output capacity increases to 20 million tonnes per year by the end of 2012 after the start of Dragon Steel’s second blast furnace and the capacity expansion of hot rolling mill.

New hot rolling mill of Dragon Steel started the test run on April 30 and the firm plans to start the commercial manufacturing in July. The firm supplies the product to domestic users and plans to export to Japan and other Asian countries after the evaluation of quality. The firm expands the hot rolling capacity from 3 million tonnes per year to 4 million tonnes after the start of second blast furnace.

The production capacity of No.3 cold rolling mill of CSC is 1.5 million tonnes per year, of which 400,000 tonnes is allocated to galvanizing line.

Dragon Steel started the operation of first blast furnace at the end of February and the firm started the construction of second furnace. The annual capacity of second furnace is 3 million tonnes compared with 2.5 million tonnes for first furnace. The firm increases the hot rolling mill output capacity after the start of second furnace. The firm plans to supply hot rolled coil for the downstream operation including Vietnamese cold rolling joint venture with Sumitomo Metal Industries, which is scheduled to start in 2013. CSC group increases the output capacity from upstream to downstream when the steel supply remains tight in Taiwan with strong demand at home and abroad.