ACCOUNT PROFILE

Chun Yu revenue surges 33 percent on robust demand for steel products

Posted on 15 February 2021

Chun Yu Works & Co Ltd (春雨工廠), a subsidiary of Taiwan Steel Group (TSG, 台灣鋼鐵集團), yesterday reported revenue of NT$840.62 million (US$29.61 million) for last month, 3.67 percent growth year-on-year, on the back of strong steel demand.

On a monthly basis, last month’s figure fell 0.67 percent from a monthly record of NT$846.25 in December last year.

As sales of the company’s products — including fasteners and wires for industries as diverse as construction, automotive, heavy machinery and aerospace — remained high, monthly revenue stayed above NT$800 million for a second straight month last month, local Chinese-language media quoted Chun Yu chairman Lin Hui-cheng (林輝政) as saying.

Taiwan’s successful control of its COVID-19 outbreak also helped ensure that the company’s production lines continued to work uninterrupted, Lin said.

As the consumption of vehicles, household appliances and machinery products continues to recover in the US and Europe, the company is upbeat about its export business, with good order visibility well into the second quarter, he said.

Chun Yu was not the only TSG subsidiary to benefit from a rise in steel prices and increased demand.

OFCO Industrial Corp (久陽精密), a maker of screws and nuts, yesterday reported that revenue last month reached NT$284.64 million, up 5.18 percent month-on-month and 291.35 percent year-on-year.

It was the sixth consecutive month that the company posted revenue of more than NT$200 million, OFCO chairman Norman Sun (孫正強) told local media.

That validated the company’s decision to diversify from its core fasteners business into the circular economy with by-products of the steel production industry, such as oxidation slag and reduction slag, Sun was quoted as saying.

The company, which collects and extracts usable materials, and disposes of materials generated by TSG, is looking for clients outside of the group, Sun said, adding that it would next expand into the treatment of precipitation ash.

Source : Taipei Times