Wed, Jan 31, 2018 - Page 12 News List

Steel Union shares surge on first day of trading

By Kuo Chia-erh  /  Staff reporter

Shares of Taiwan Steel Union Co (鋼聯), a joint venture by the nation’s 12 major steelmakers, yesterday surged more than 30 percent on their debut on the Taiwan Stock Exchange, after the company raised NT$1.11 billion (US$37.96 million) in an initial public offering (IPO).

The shares closed at NT$114 on their first day of trading on the main bourse, after peaking at NT$117, far above its IPO price of NT$86.

The benchmark TAIEX ended the day 1.29 percent lower.

The Changhua-based Taiwan Steel Union, which collects valuable zinc from electric arc furnace (EAF) dust generated during steel manufacturing, is Asia’s largest EAF dust recycling firm, company information showed.

Tung Ho Steel Enterprise Corp (東和鋼鐵), one of the nation’s leading steelmakers, is Taiwan Steel Union’s biggest shareholder, with a 24.84 percent stake, while Feng Hsin Steel Co (豐興鋼鐵) ranks second with a 22.01 percent share.

Taiwan Steel Union posted revenue of NT$1.91 billion last year, up 25.12 percent from the previous year’s NT$1.52 billion, supported by rising global zinc prices.

Apart from its core business, the company has been working on a new NT$1.7 billion plant to recycle steelmaking slag at the Changhua Coastal Industrial Park (彰濱工業區), as part of its long-term plan to seize opportunities in the growing industrial waste recycling market.

The new plant would be able to process 170,000 tonnes of slag in its first year, said chairman Mark Lin (林明儒), who is also the chairman of Feng Hsin.

The facility, which is to begin operations by the end of this year, will eventually be capable of processing up to 300,000 tonnes of slag per year, Lin said at a listing ceremony in Taipei yesterday.

In related news, E&E Recycling Inc (綠電再生) is expected to make its debut on the Taipei Exchange in the first quarter at the earliest, after the firm obtained permits from securities authorities last month.

E&E is a joint venture by several local home appliances makers, including Panasonic Taiwan, Teco Electric & Machinery Co (東元電機) and Sanyo Electric Co (Taiwan) (台灣三洋).

The firm, which has paid-in capital of NT$325.65 million, is the first Taiwanese company to provide recycling services for waste home appliances in Asia, according to its Web site.

E&E has a plant in Taoyuan’s Yangmei (楊梅) and seven plants in China, company data showed.

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