CSC attempts to stop Formosa's steel project

According to the recent news in local Taiwanese media, the largest steelmaker of the country China Steel Corporation (CSC), applied to the Ministry of Economic Affairs in order to cancel the integrated steel mill project by Formosa Plastics Group. CSC claims that the construction of new steel plants without sufficient demand from steel consuming industries would make no benefit and result in the misuse of the national resources. Furthermore, Formosa's steel plant will mainly produce hot-rolled steel products which will have to be exported abroad because of the insufficient demand. On the other hand, Taiwan already imports large quantities of billets and slabs in order to meet the demand from the steel industry in the country, according to CSC. However, it is unlikely for the government to stop the project after having allocated the land, as previously reported by SteelOrbis.