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China Steel Corp. Board Maps Out Near-Term Investments
12/31/2008 - China Steel Corp.’s Board of Directors announces plans to set up its No. 8 Vacuum Degasser and to subscribe for shares of Dragon Steel Corp. and Chung Hung Steel.
China Steel Corp.’s Board of Directors recently agreed to subscribe for 2 billion shares of Dragon Steel Corp. in the private offering of capital increase. Dragon Steel is planning to raise NT$21.2 billion by issuing 2 billion common shares at a share price of NT$10.6; proceeds will help to fund the company’s hot strip mill project and Stage 2 Phase II expansion project. As Dragon Steel’s only shareholder, China Steel Corp. currently holds 100% of Dragon Steel and will subscribe for the total amounts.
China Steel’s Board has also decided to subscribe for common shares in the capital increase of Chung Hung Steel. Chung Hung Steel is planning to issue 400 million shares in early 2009 through capital increase, and will use the proceeds to reimburse bank loans, strengthen its financial position, and enrich operating capital. As the largest shareholder in Chung Hung Steel, China Steel Corp. will subscribe for the issued shares with the ceiling of 360 million shares.
China Steel also announced plans to set up the No. 8 Vacuum Degasser at its steelmaking plant. The new vacuum degasser will help the company meet requirements for high grade steel production at its No. 3 Cold Rolling Mill. The company said the project would commence in January 2009 and is scheduled for completion in June 2012.
China Steel Corp.’s Board reached its investment decisions during a recent meeting—the 8th meeting of the company’s 13th Board of Directors—held earlier in December at Kaohsiung.
