China Steel Corp (中鋼), the nation’s only integrated steel producer, yesterday said it is considering a NT$1.5 billion (US$51.06 million) joint venture to make automotive parts using the hot stamping process.
The firm made the remark after the Chinese-language Economic Daily News reported that the company will join with auto parts producer Engley Auto Parts Co (英力), steel producer Chang Yee Steel Co Ltd (璋釔) and Taiwan’s Metal Industries Research & Development Center (MIRDC) to establish a production line in Taiwan and two production lines in China to manufacture 4.5 million auto parts per year.
“The investment project is still under evaluation and has not yet been approved by the board,” China Steel vice president Steve Lee (李慶超) said in a filing to the Taiwan Stock Exchange.
The company is set to hold a board meeting on Nov. 8.
China Steel created a research team in December 2011 to study hot stamping in the manufacture of auto parts after seeing the method used in the US and Europe.
The company said auto parts produced by the hot stamping process could provide higher stability and strength to cars.
The report said the new venture, once established, will provide auto parts to China-based First Automobile Works Group (大陸第一汽車), Yulon Group (裕隆集團) and Hua-Chuang Automobile Information Technical Center Co (華創車電), Yulon’s auto parts provider.
Total car sales in China were 19.27 million units last year, while car sales in Taiwan totaled 365,871 units in the same period, according to industry data.