Taiwan-based China Steel Corporation (CSC) announced the results of its Board of Directors meeting held on 27 August 2012.

For the first half of 2012, the company reported revenues of NT$110,675 million (US$3.7 billion), pretax income of NT$1,929 million (US$64.4 million), and net income of NT$1,943 million (US$64.9 million). The company produced 4.33 million tonnes of steel products in the first six months of the year.

Since the company’s No. 2 continuous annealing line (CAL) has been operating for 20 year, the board approved a revamp project to develop new high-grade and high-strength steel products. It is estimated the project will be able to reduce production cost, as well as decrease CO2 emission by about 562.4 tonnes per year owing to the saving of electric power once the project is finished. The project will commence in September 2012 and is scheduled for completion in April 2015.

CSC invested US$135 million to buy 5% of the charter capital of Formosa Ha Tinh Steel Corporation in 2010. Since the investment project of Formosa Ha Tinh Steel has been revised, the total amount of investment has also been re-estimated to increase US$2,117 million comparing with the original plan. In addition, Formosa Ha Tinh Steel’s self-own capital has been increased to be US$3,500 million for improving its financial structure. CSC revalued the project accordingly and still deemed it to be feasible. Therefore, the meeting resolved to increase US$40 million of investment to the project for enabling CSC to keep its 5% of holding ratio in Formosa Ha Tinh Steel’s capital.

CSC will invest to establish a steel service center in Qingdao City, Shangdong Province, China, with Rechi Precision Co., Ltd. and China Steel Global Trading Corporation in order to explore sales channels and establish a sales presence in Northern China. The planned capital will be US$20 million in which CSC invests US$12 million for holding a 60% share.