From July 28 to 30, the MIRU Global Team conducted a plant study tour of Taiwan's stainless steel, electric arc furnace (EAF), EAF dust recycling, and industrial waste recycling industries. The delegation consisted of nine participants, including three members of the MIRU journalism team, as well as representatives from Japanese trading companies specializing in rare metals and recycling, and lead smelting.
This report covers the visits made on July 29 (Day 1) in Kaohsiung, Taiwan's largest heavy industrial city, to Hai Kwang Steel, one of Taiwan's longest-established EAF steelmakers, and Tang Eng Iron Works, one of the country's premier stainless steel producers.
This study tour was sponsored by Sanct Co., Ltd., whose custom-designed sponsor towels showcased the company's core business sectors and were distributed to participants during the tour.
The delegation also benefited from outstanding local support throughout the program. Special thanks go to Mr. Ken Wu, President of Benzene Group Limited (Kaohsiung); Mr. Kei Tu of Ton Yi Industrial Corporation, a member of one of Taiwan's largest food industry groups headquartered in Tainan; and Ms. Queenie Nagase, who is active in both Japan and Taiwan. Their assistance with coordinating company visits, transportation, and on-site logistics was instrumental in making the tour a success.
■ Site Visit 1: Hai Kwang Enterprise Corp
-A nod to Japanese manufacturing craftsmanship, and a leading EAF maker shifting to domestic equipment.
On the morning of the first day of the tour, we visited Hai Kwang Enterprise, a leading local electric arc furnace (EAF) maker. It was a valuable opportunity to experience the scale and dynamism of the plant firsthand and gain firsthand insights into current operations and market conditions. One of the first things that caught our attention was the aging Japanese-made equipment (manufactured by Mitsubishi Heavy Industries) — including the electric furnace and continuous casting equipment — which conveyed a real sense of history. This equipment has supported the company's production for many years, but as it ages, the plan going forward is to renew it with Taiwanese-made equipment. It was striking to see deep respect for Japanese manufacturing reflected throughout the site.
-Key Discussion Points and Market Trends
Current production totals roughly 30,000 tons per month combined for billets and round bars. The steel scrap feedstock mix is 70% domestically sourced and 30% imported. On the sales side, sluggish construction demand within Taiwan is a challenge; nearly all billets and rebar produced go to the domestic market, and virtually all production is supplied to the domestic market.
When we asked about the inflow of cheap Chinese steel, which is a concern in other Asian markets, the response was that there is no impact at present. The company attributed this primarily to exchange rate movements: a stronger yuan has made Chinese products relatively more expensive, which in effect has held back their inflow into the domestic market.
■ Site Visit 2: Tang Eng Iron Works Co., Ltd.
-The realities facing an 85-year-old stainless steel maker, and a push toward higher value-added products to survive
In the afternoon, we visited Tang Eng Iron Works, Taiwan's oldest steelmaker and the island's first stainless steel producer.
Despite its proud 85-year legacy, the company's current business environment is extremely severe. In the market for commodity grades (such as SUS304), it has been squeezed by imported material from China and Indonesia with overwhelming price competitiveness — current production has plunged to just one-tenth of the level of ten years ago, now around 3,000 tons per month, a harsh reality we witnessed firsthand. One might assume Taiwan would naturally impose anti-dumping duties on Chinese and Indonesian stainless steel in response to such imports, but the answer was: "The government hasn't moved at all. We've petitioned the government a few times, but no action has been taken."
-Structural reform and strategic pivot to survive
As stainless and carbon steel production alone could no longer sustain the business, the company effectively came under state-backed management after China Steel Corporation (CSC) became its controlling shareholder around 2006. Today, roughly 50% of its shares are held by Taiwan's largest steelmaker, China Steel Corporation (CSC), and 4 of its 8 board members come from CSC.
A major pillar supporting the current business is real estate. By leasing out the extensive land and buildings that group companies held before nationalization, the company earns stable rental income that provides a stable source of revenue, generating approximately ¥1 billion annually.
As a survival strategy for the future, the company has accepted that it cannot beat Chinese and Indonesian rivals in the high-volume 304 series, and is distancing itself from commodity products. Instead, it is focusing on developing high-nickel specialty steels and new materials. Its push into "high value-added products," leveraging the company's own technical strengths, holds the key to its future revival.
Through the Day 1 visits, we gained a deep understanding of the "reality" of Taiwan's steel industry in sharp contrast: the protective effect of exchange rates in the commodity steel market versus the ferocity of imported material in the stainless steel market. The Day 2 report continues tomorrow.
■ Welcome Dinner: A Kickoff Full of Taiwan's Culture and Energy
Prior to the plant visits, the tour began with a networking gathering in Kaohsiung. The intensive and highly productive schedule was made possible thanks to the tremendous support and seamless coordination provided by our local coordinator, Ken Wu, his colleague Kei Tu, and Queenie Nagase. We sincerely appreciate their invaluable assistance throughout the tour.
The warm hospitality we received offered an excellent introduction to Taiwan's vibrant culture and energy, making for a memorable kickoff event while building excitement and momentum for the full day of industrial site visits that followed.
Day 2 Report: Taiwan Plant Tour Day 2: Visiting TSU and TSR: The Frontline of World-Class EAF Dust & Slag Recycling
