From left are Ronggang general manager Kang Yongchang and chairman Wang Jiongfen. (Photo by reporter Lin Jinghua)
[Reporter Lin Jinghua/Reported from Taipei] Special steel manufacturer Ronggang (5009) has entered the semiconductor supply chain! In addition to the continued growth of the three major industries of aerospace, military industry, and energy, Rong Gang is also optimistic about the market demand for high-clean pipes and valves in the semiconductor industry. He plans to use VAR (vacuum arc remelting) technology to enter the market and challenge the current domestic material sources that are highly dependent on imports from the United States and Japan. It is estimated that the relevant layout It will be an investment of more than billions of yuan; Kang Yongchang, general manager of Ronggang, explained that the amount of orders on hand has increased to more than 8.5 billion yuan, and the average sales price (ASP) in the second half of the year has increased by about 20% compared with the first half of the year. With the support of the product structure and price of the three major businesses, the gross profit margin is expected to continue to improve.
Kang Yongchang said that the aerospace, military and energy industries account for about 60% of revenue. Among them, aerospace has the highest gross profit, but the certification time is relatively long, and the military industry has a fast delivery cycle and fast turnover, which is profitable. He revealed that domestic and foreign orders and demand are stable, and it has supplied gun barrels and barrel materials to the Israeli weapons industry; Turkey's largest private processing plant and missile factory have visited and negotiated. For domestic orders, the 105 mm gun body uses the alloy forged steel produced by Ronggang. Recently, the military industry's share has increased from about 10% to 20%. It is expected to set up a service base in Turkey, Europe, to serve customers nearby.
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As for the gas turbines that mainly supply thermal power generation in the energy field, customers include Mitsubishi Heavy Industries, GE (GE), etc. Because AI drives power demand, customers' own orders are being chased, and visibility is quite long. In addition, the application of high-end special steel can also be extended to SMR small nuclear energy, which are all Ronggang's layout areas.
The amount of Ronggang's orders on hand has gradually increased from more than 7 billion yuan to 8.5 billion yuan. Kang Yongchang said that the focus is not on the increase in order visibility and amount, but on choosing customers who give priority to supply due to limited production capacity. Facing production capacity issues, VAR (vacuum arc remelting) equipment needs to be increased from 10 to 15 units, which is expected to be completed by the end of the year; ESR (electroslag remelting) equipment currently has 6 units, and is internally evaluating to add 4 more units. Kang Yongchang explained that if the board of directors approves the report at the end of the year, production can be added to contribute revenue as early as the second half of next year.
He further revealed that in the past, VAR's main production capacity was used in aerospace and military industries, but the semiconductor industry is booming. Bulk gases, special gases and chemical delivery systems in wafer factories all require high-clean pipes. However, domestic material sources currently rely on imports from the United States and Japan. Ronggang's VAR equipment process can produce related materials. There are internal discussions to enter the high-clean pipe and valve market, and it is expected to be an investment of more than billions of yuan. The overall production system of Ronggang Liuying's 50-ton furnace has been completed, and advanced equipment such as vertical casting machines have been put into operation. The large rod line is expected to be connected in the first half of 2027, which can significantly improve production capacity and competitiveness.
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