China Steel Aluminum to invest NT$1b in Taiwan's smart manufacturing plant

China Steel Aluminum, a subsidiary of China Steel, will invest approximately TWD 1 billion (USD 32 million) to build a smart manufacturing plant in Kaohsiung, Taiwan. The investment was among two expansion applications approved by the Invest Taiwan Office on October 1, with a combined value of TWD 1.1 billion (USD 33 million).

The new facility will be located in the Xiaogang District and focus on smart manufacturing and lower-carbon production. China Steel Aluminum, Taiwan’s largest manufacturer of aluminium rolled products, produces aluminium plates, sheets, coils and foil, as well as zinc alloy and hot-dip galvanised ingots.

The investment supports the company’s shift toward high-end and low-carbon aluminium materials. The plant will integrate artificial intelligence (AI), the Internet of Things (IoT), sensors, digital controls and data analytics to improve manufacturing efficiency and product quality consistency.

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New plant to combine smart technology with energy efficiency

The facility will incorporate energy-saving equipment and solar power generation systems to reduce energy consumption and carbon emissions from production. The project is expected to create four new domestic jobs, with its focus on improving product value and strengthening the company’s high-end aluminium supply capabilities.

The plant’s location in Xiaogang also builds on China Steel Group’s existing industrial presence in southern Taiwan. The area is an established centre for steel and metal processing, providing opportunities for closer integration with the group’s supply chain.

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Taiwan investment programme attracts TWD 3 trillion

The second approved investment came from Xingzhong Environmental Technology, which will invest around TWD 30 million (USD 940,000) to expand smart production lines at its existing facility in Wujie Township, Yilan County. The company manufactures pulp-moulded products and equipment, including biodegradable paper-based alternatives to plastic packaging.

The expansion will introduce AI-enabled automation and quality inspection, along with low-carbon, energy-efficient equipment. The project is expected to create six domestic jobs.

The two approvals form part of Taiwan’s Invest Taiwan Three Major Programs. As of October 1, the initiatives had attracted 1,826 companies and more than TWD 3 trillion (USD 88 billion) in investment commitments, with a projected 170,134 domestic jobs.

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The Roots in Taiwan Enterprise Accelerated Investment Action Program had 237 participating companies, TWD 665 billion (USD 21 billion) in investment, and 30,552 projected jobs 

Additionally, 13 companies were awaiting review under the Invest Taiwan programme as of October 1.