Recently, Shanxi Taigang Stainless Steel (000825.SZ) announced that the company would increase investment in Tianjin TISCO & TPCO Stainless Steel Co., Ltd. After the move, the registered capital of Tianjin TISCO & TPCO Stainless Steel Co., Ltd. will be RMB1.863 billion, in which Shanxi Taigang Stainless Steel will have 65%, and dominate Tianjin TISCO & TPCO Stainless Steel.
Tianjin TISCO & TPCO Stainless Steel Co., Ltd. was established in 2007, with major products including stainless steel plates and relative products. Currently, Project Phase II of Tianjin TISCO & TPCO Stainless Steel Co., Ltd. is still under construction.
Main Projects of Tianjin TISCO & TPCO Stainless Steel
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Capacity (Ton)
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Notes
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First Phase
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160,000
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Stainless steel sheet, thickness range: 0.3-3mm, width range: 800-1320mm
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Second Phase
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360,000
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Stainless steel, which has passed environmental approval
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Source: Shanxi Taigang Stainless Steel; ResearchInChina
The second phase project of Tianjin TISCO & TPCO does not start operation, therefore, its production scale only accounts for a small proportion in Taigang Stainless Steel business, with total assets occupying 5% of Taigang Stainless Steel. Its revenue attributable to Taigang covers about 5% of Taigang’s revenue. Profitability of TISCO & TPCO will be gradually improved, with its second phase project going into operation, which will be good for the development of Taigang Stainless Steel.