Thu, Dec 29, 2011 - Page 12 News List

CSC to issue bonds amid changes up top

CHANGES:The steelmaker said it would sell bonds to fund long-term growth projects, which will come around the same time that top CSC managers retire

By Kevin Chen  /  Staff Reporter

China Steel Corp (CSC, 中鋼), the nation’s largest integrated steelmaker, yesterday announced it would raise funds and reshuffle its senior management in a bid to pursue long-term growth.

The personnel changes will affect the company’s vice president and several senior positions at its subsidiaries, CSC said in an e-mailed statement.

The Greater Kaohsiung-based company said its board yesterday approved a plan to sell as much as NT$20 billion (US$659.8 million) in corporate bonds in Taiwan next year to enhance its working capital.

The company’s refinancing needs come as the nation’s interest rates remain relatively low compared with levels seen prior to the 2008 global financial crisis. However, CSC did not say when it would issue the bonds, neither did it discuss prices or provide information about the length of their maturity.

The company’s board also approved a plan to reshuffle senior management, including the promotion of Andrew Sung (宋志育), vice president of its production division, to the post of president beginning next year.

Sung’s appointment will take effect as soon as incumbent Ou Chaur-hwa (歐朝華) retires on Feb. 1, and Sung’s vacancy will be filled by Jeng Tsung-ren (鄭宗仁), vice president of the company’s engineering division, the statement said.

However, more personnel changes could be on the horizon as CSC executive vice president David Du (杜金陵) is expected to retire in March, while several heads of the company’s subsidiaries are also slated to retire next year as they reach the compulsory retirement age of 65.

These retirements will include Chung Hung Steel Corp (中鴻) chairman Chen Kun-mu (陳坤木), CS Aluminum Corp (中鋁) chairman Chang Shih-tung (張士桐) and Dragon Steel Corp (中龍) chairman Shyng Quen-guey (邢坤貴).

Separately, CSC said it would purchase all of the 1.6 billion new shares to be issued by Dragon Steel at NT$10 a share. The Greater Taichung-based unit plans to use the NT$16 billion in proceeds to fund future expansion, the statement said.

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