China Steel Corporation (CSC) in Taiwan has announced the decommissioning of its historic No. 1 blast furnace, the first of its kind on the island, scheduled for no later than the first quarter of 2029. The furnace has been in operation since June 27, 1977.

Key Details of the Decision

• Primary Reasons: The board's decision is based on assessments of global steel overcapacity, future market demand, and operational efficiency.

• Current Status: The furnace, with an annual design capacity of 1.8 million tons, remains operational. The decommissioning process will allow for a phased transition to avoid disrupting production.

• Future Plans: CSC is exploring the possibility of converting the site but notes technical challenges, as Electric Arc Furnaces (EAFs) are typically difficult for producing certain high-grade steel products.

Industry Context

    This move aligns with broader trends in the Taiwanese and global steel industry. Facing market competition and environmental pressures, Taiwanese producers are adjusting strategies. Concurrently, major local players are focusing on overseas expansion and green procurement initiatives to enhance competitiveness.