Taiwan’s CSC to invest in new autoparts company in China
Taiwanese steelmaker China Steel Corp (CSC) will invest NT$350 million ($11.3 million) in a new automotive parts company in China to expand its auto steel sales channels in the Asian nation.
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The investment will see CSC holding an indirect stake of 26.5% in Chongqing Auto Parts, a new joint venture company that will be dedicated to the manufacture of autoparts in Chongqing city in south-west China, CSC said on Wednesday June 24.
Out of the total capital, NT$218 million ($7 million) will be invested through Honley Auto Parts, a CSC subsidiary established last year in Taiwan, while the remaining NT$132 million ($4.3 million) will come from its Singapore-based subsidiary China Steel Asia Pacific Holdings.
CSC said it plans to expand its investment in the autoparts supply chain in the future through Honley Auto Parts’ research and development technology.
Last year, CSC chairman Jo-chi Tsou told Steel First that auto steel accounted for around 10% of the company’s sales and that there were projects with car manufacturers in both Taiwan and China for the development of new high-strength, lightweight steel products.