China Steel Corporation (CSC), integrated producer of steel products in Taiwan, has invested an additional US$40 million in a joint-venture steel plant with Formosa Plastics Group (FPG) in Hà Tĩnh Province, Vietnam, to secure a 5% share, also investing US$12 million to build a metal cutting center in Shangdong Province to tap the northern China market.

CSC’s first-half revenues reached NT$110.675 billion (US$3.69 billion), with NT$1.929 billion (US$64.3 million) in pretax earnings, NT$0.13 (US$0.0043) in earnings per share (EPS), according to CSC.

C.C. Li, executive vice president of CSC, pointed out that the company invested US$135 million in FPG’s steel plant in Hà T?nh in 2000 for a 5% share, with the total investment set to increase by US$2.117 billion, and CSC deciding to invest US$40 million more to secure a 5% share.

To expand sales into northern China, CSC has co-invested with Rechi Precision Co. and China Steel Global Trading Corporation to establish a metal cutting logistics center in Qingdao, Shandong province, at a cost of US$20 million, of which CSC will invest US$12 million for 60% share.

An institutional investor stated the global steel market is in doldrums. CSC initially planned to increase shareholding in the steel plant in Hà T?nh, but stopped adding capacity lest global steel production rises too fast.

CSC has gradually set up metal cutting centers in Foshan, south China, and Chongqing, southwest China, and will achieve more complete deployment in China after setting up the new logistics center in Shandong, northern China.