CSC Saw World Competitiveness Rank Slip to No.16

Taipei, Oct. 4, 2005 (CENS)--China Steel Corp. (CSC), Taiwan's largest integrated steelmaker, saw its world competitiveness ranking plunge to 16th place in 2005 from the No.4 position in 2003, according to a survey conducted by World Steel Dynamics (WSD).

Headquartered in New Jersey, U.S.A., WSD is the world's leading steel information service. WSD regularly analyzes and publishes reports on steel prices, steelmakers' costs, steel supply and demand, and steel finances. The organization also handles specialized steel research assignments and specializes in in-depth studies, private consulting studies, and financial evaluations.

The WSD international client list includes major integrated and non-integrated steel companies, steel users, equipment and raw material suppliers, financial institutions, government agencies, metal traders, steel service centers and trade associations.

Major factors leading to CSC's slide in the world rankings include the limited scale of Taiwan's domestic market, the inability to secure new sources of iron ore, the slow pace of production expansion, and the failure to introduce advanced technologies. In addition, rival producers have made constant improvements in their product quality, increasing the efficiency of their production, and stepping up to approximate the financial profile that CSC has always possessed.

CSC said it would take its fall in the world rankings as a warning signal. But the company also believed its world ranking would slide further next year if it fails to make breakthroughs in acquisition of raw materials and expand its capacity production capability and markets.

CSC advanced three notches to become the world's No.4 steel producer in 2003 from the previous year's No.7 position, behind only to POSCO of South Korea, Baosteel of mainland China and Nucor of the U.S.

An iron and steel expert said that over the past several years many profitable steelmakers the world over have been expanding their territories because of the sharp rise in steel prices. For instance, POSCO has found success in entering the markets of mainland China and India, in addition to investing in iron-ore fields and the introduction of advanced technologies to nurture its steel subsidiaries.