China Steel chair candidate replaced

The Cabinet will appoint a different person as chairman of China Steel Corp (中鋼) after the nation's largest steelmaker last week proposed incumbent Chiang Yao-chung (江耀宗) retain the position, Central News Agency (CNA) reported yesterday, citing a senior official at the Ministry of Economic Affairs.

Vice Minister of Economic Affairs Shih Yen-hsiang (施顏祥) said in the report that the Cabinet had approved a plan to name former chairman Lin Wen-yuan (林文淵) as Chiang's replacement at the helm of the company.

The steelmaker is scheduled to hold a special board meeting on Friday to approve the personnel change, he said.

Shih did not explain the reason for the change and did not specify what position Chiang might take up instead.

The government is China Steel's largest shareholder, with a 22.6 percent stake in the company. As Chiang is an institutional representative appointed by the Ministry of Economic Affairs, the ministry can appoint Lin without going through the board.

China Steel executive vice president Chung Lo-min (鍾樂民) said yesterday that he couldn't comment on the personnel change because the company had not received formal documentation.

Lin is the chairman of Taiwan Cogeneration Corp (台灣汽電共生公司) and an independent director at the board of Taiwan High Speed Rail Corp (台灣高鐵).

He resigned the China Steel chairmanship and handed over to Chiang in October 2005 amid a controversy over stock bonuses of more than NT$40 million (US$1.2 million) he received when he was the firm's chief executive officer.

Additional reporting by Jessie Ho