News and Research on China Precision Steel, Inc. (CPSL)
Business Description
China Precision Steel, Inc., through its subsidiary, Shanghai Chengtong Precision Strip Company Limited, operates as a precision steel processing company. The company principally engages in the manufacture and sale of cold-rolled and hot-rolled precision steel products and plates for down stream applications in the automobile industry (components and spare parts), kitchen tools and functional parts of electrical appliances. The company’s operations are conducted principally in China.
Products
Cold-rolled steel products represent hot-rolled de-scaled (pickled) steel coils which are used as raw materials in the precision steel industry which have been processed by cold reduction through a cold-rolling mill to the desired thinness. Cold-rolled sheet products are used in a variety of end applications such as appliances (refrigerators, washers, dryers, and other small appliances), automobiles (exposed as well as unexposed parts), food packaging materials, electric motors and bathtubs. Cold-rolled sheet products are used in these and many other areas of manufacturing.
Hard-rolled steel represents steel products manufactured from cold reduction to the desired thinness without annealing. This type of hard-rolled steel is most often applied to further processing for applications such as continuous galvanizing. Hard-rolled or cold-rolled steel with low carbon represents hard-rolled or cold-rolled steel with carbon content of less than 0.1%. It is a typical engineered steel product.
The company, as of December 31, 2006, produced approximately 40 high precision steel products covering a range of approximately 100 specifications. Chengtong produces precision steel products which can be categorized into five major categories of products:
Low carbon cold-rolled steel: Its applications include food packaging, dry batteries, electronic devices, and kitchen tools.
Low carbon acid wash steel: Its applications include food packaging, dry batteries, electronic devices, and kitchen tools.
Low carbon hard-rolled steel: Its applications include food packaging, dry batteries, electronic devices, and kitchen tools.
High carbon cold-rolled steel: Its applications include automobile components, saw blades, weaving needles, and springs.
High carbon hard-rolled steel: Its applications include automobile components, saw blades, weaving needles, and springs.
The company produces extremely thin cold-rolled precision steel strips ranging from 3.0 mm to 0.03 mm. It also provides heat treatment and cutting of medium and high carbon hot-rolled steel strips and chrome stainless steel series approximately 3.0 millimeters fineness. The company’s specialty precision products are mainly used in the manufacture of automobile parts and components, food packaging materials, saw blades, textile needles, microelectronics, packing and containers.
As of December 31, 2006, Chengtong had an annual production capacity of approximately 250,000 tons. With the completion of the new production facilities, Chengtong installed one 1,400mm width cold mill, adding an additional 150,000 tons to the company’s annual production capacity.
History
China Precision Steel, Inc. was founded in 2002.
