Walsin Lihwa to gain advantages from post-war reconstruction in Ukraine
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Update time : 2025-02-24 17:01:16
Walsin Lihwa, a stainless steel wire rod and cable manufacturer in Taiwan, said that the Russia-Ukraine war has affected the European economy, causing a decline in stainless steel demand, especially in the automotive industry, and pushing up energy costs and squeezing manufacturing profits.
In addition, the war has led to an unstable global raw material supply chain, of which nickel price experienced fluctuations, which have increased challenges for the company’s resource businesses, especially the nickel pig iron sector.
However, if the war ends, Ukraine's reconstruction will drive demand for stainless steel, and Walsin Lihwa is expected to benefit from the infrastructure and factory reconstruction. The company's production capacity layout in Europe, such as wire rod production in Italy and high-end market from its Special Melted Products (SMP) in the UK, can help the company participate in the reconstruction.
In addition, Europe's potential steel tariff measures would have a limited impact on Walsin Lihwa because it can adjust its production capacity in Indonesia and Taiwan.
Although the Russia-Ukraine war caused short-term market pressure on Walsin Lihwa, the post-war reconstruction will bring long-term opportunities. The company is expected to have an advantage in the market through its layout in Europe and investment in high-end products.
