China Steel Corp-CSC, the nation’s only integrated steel maker, plans to increase its investment in Malaysia-based Sakura Ferroalloys Sdn Bhd by US$13.87 million to replenish the latter’s working capital.
China Steel has a 19 percent interest in Sakura Ferroalloys, a provider of manganese ferroalloy that is expected to become operational by the end of next year, China Steel vice president Lin Horng-nan said by telephone yesterday.
Africa-based Assmang Ltd, which produces manganese, iron ore and chrome, has a more than 50 percent holding in Sakura Ferroalloys, while Japan’s Sumitomo Corp holds an about 25 percent to 30 percent share, according to China Steel.
Based on its shareholding, China Steel secures about 19 percent of its manganese ferroalloy from Sakura Ferroalloys, accounting for one-third of the Taiwanese firm’s annual consumption.
China Steel said it spends 3 percent to 5 percent of its procurement costs of about NT$220.45 billion (US$7.34 billion) a year on purchasing manganese ferroalloy. Meanwhile, China Steel also plans to purchase another 5 percent share of its Vietnamese subsidiary China Steel Sumikin Vietnam Joint Stock Co (CSVC) from Sumitomo Corp, as the Japanese firm plans to sell all its 5-percent shares in various companies, Lin said.
China Steel currently holds a 51 percent stake of the Vietnamese subsidiary. From January through last month, China Steel posted revenue of NT$215.22 billion, up 6.23 percent from NT$202.6 billion a year ago, according to the company’s filing to the Taiwan Stock Exchange.