Cost Control

Due to the effects of international political and economic turmoil, inflation, rising interest rates, and weakening demand on the steel market in 2022, CSC stepped up activities to reduce costs and increase profits, in order to mitigate the impact on operations. In light of the rapid changes in the industry prosperity and economy and to enhance competitiveness in response to dramatic changes in the competitive environment, in addition to the projects to " cost reduction and profit increase," we also plan to organize activities to "reduce controllable cost above" as a support measure in 2023, in order to strengthen constitution and increase overall synergies.

  • Highlights in 2022
    In response to the market rebound, CSC began implementing cost reduction and profit increase projects on a larger scale in June 2022 with the aim of boosting its profits. The number of cost reduction projects rose from 451 to 512 while the original target of 4.03 billion TWD was adjusted to 5.09 billion TWD, leading to 5.99 billion TWD in actual cost savings with a target achievement rate of 117.6% in 2022. The localization of equipment and spare parts and reduction of maintenance expenses contributed 1.27 billion TWD. Raw materials account for the highest percentage of production costs. Hence, we increased the percentage of secondary raw materials with lower prices, and implemented an iron making smart platform to precisely control the proportions of raw materials with iron content and the fuel rate of blast furnace to reduce cost; this contributed 1.44 billion TWD.


  • 2023 Target
    Cost reduction and profit increase projects will add up to 568 items, with the total cost reduction target amounting to 5.19 billion TWD.
Unit:100 million TWD 2019 2020 2021 2022 2023
Cost Reduction and Profit Increase Target 61.8 45.8 45 50.9 51.9
Cost Reduction and Profit Increase Performance 72.5 60.4 52.4 59.9 -