Chung Hung Shifts Export Business to China Steel Global Trading

China Steel Corporation (CSC) Group, Taiwan`s largest integrated producer of steel products, has resolved to shift the export business of its subsidiary--Chung Hung Steel Corp. to another subsidiary-China Steel Global Trading Corp.

The group said the business shifting is part of its internal resources integration plan. The business shifting will be carried out sometime in May at the earliest.

CSC Group said the business-shifting measure would lay a foundation for the consolidation of production, sales and procurement of its three major subsidiaries, including China Steel Corp., Chung Hung, and Dragon Steel Corp.

At present, Chung Hung is capable of rolling out 2.4 million metric tons of steel products annually, 20% up to 25% of which or NT$10 billion (US$304.87 million at US$1:NT$32.8) are exported.

An executive of Chung Hung complained export business has been the most import business scope for his company and the business shifting will adversely affect its operating performance.

T.H. Chen, business vice president of CSC and chairman of Chung Hung, said the business shifting would begin from the export markets of mainland China and Hong Kong.