Our products

Steel components & car parts

The Group produces a wide range of steel products which are used as components in the production of car chassis, fire extinguishers, mechanical and household appliances, high velocity forging machines, metal cabinets, control consoles, safes, steel furniture, motorcycles, fans, kitchenware and stationery.

The Group’s products are classified into three specific types; strip, plate and pipe, in addition to the car part components.

Currently CTL is producing around 40,000 tonnes a year of product and plans to increase that to 60,000 tonnes in 2017.

CTL plans to expand its production offering through upgrading elements of its plant capacity. The main equipment has the capacity to process around 15,000 tonnes per month or around 180,000 tonnes per year.

The existing annealing furnaces however cause a bottleneck and restrict overall production to at most 80,000 tonnes a year using 3 production shifts. It is planned that in 2018, ten more annealing furnaces will be added resolving that bottleneck situation.

Customers

CTL enjoys the benefit of having approximately 300 long term customers that purchase various value added steel products from them. In addition to these customers, the business also supplies components to suppliers to the automotive manufacturing sector that are used in vehicles such as Volkswagen, Audi, BMW, Mercedes-Benz, Geely, Land Rover, Volvo, Citroen, GM and Ford.

The broad customer base of the business also benefits from not having any one customer accounting for a disproportionate level of the overall revenue of the business. This mitigates risk and can to a degree also address any seasonal pressures that may be experienced by the business in terms of manufacturing output. 

  1. Steel products

    CTL intends to expand its current manufacturing activities of value adding unprocessed steel strip into a variety of components that it can supply to a broad number of industries.

    Strip Steel

    The Group sells strip steel at a variety of widths and thicknesses. 

    Steel Plate

    The Group sells steel plate at a variety of lengths, widths and thicknesses. 

    Steel Pipe

    The Group sells steel pipe in a variety of shapes, lengths, diameters and thicknesses. 

       

  2. Car parts

    The Group commenced production of car parts in early 2016 after purchase and installation of plant and equipment. The Group saw an opportunity to create new product sales in a rapidly expanding industry within our current skill base.

    The automotive component sector in China is one of the fastest growing manufacturing areas. The rate of uptake in private car ownership in China has made it the largest automotive market in the world.

    The level of growth within this sector is not anticipated to slow in the near future as incomes within China continue to rise and an emerging middle class can afford to purchase a vehicle. Currently, the level of car ownership when calculated on a per 1000 head of population basis shows that China has a long way to go to catch up to other parts of the world which would indicate that the sector within China will remain strong.

    The Company manufactures 9 types of car parts:

    1. Bushing set (5 sub-types)

    Used to dampen vibration between the wheels and the frame to reduce the transfer of noise and vibration.

    1. Hydraulic mount assembly (5 sub-types)

    A hydraulic mount that supports the engine and transmission, and reduces the transfer of the engine’s noise and vibration to the rest of the vehicle.

    1. Control arm or A-arm (10 sub-types)

    The hinged suspension link between the chassis and the suspension upright or hub that carries the wheel.

    1. Ball joint (10 sub-types)

    Spherical bearings used in chassis parts such as control arms.

    1. Connecting rod (8 sub-types)

    Used in ball-joints, balance shafts, and steering gear.

    1. Mass (air) flow sensor (8 sub-types)

    Used to find out the mass flowrate of air entering a fuel-injected internal combustion engine.

    1. Rubber parts (8 sub-types)

    Including rubber seals, car floor mats, rubber shock absorbers and rubber connectors.

    1. Shock absorbers (20 sub-types)

    In most of the car suspension system with have shock absorbers

    1. Air spring (20 sub-types)

    A type of suspension utilising air compression in the place of traditional coil springs.

  3. The market

    Trends in the Steel Industry

    As the Chinese economy itself moves up the value chain in terms of producing higher value goods there will be an increase in the demand for manufacturers that have the capability to provide the requisite components.

    This will require businesses to have the right sort of manufacturing equipment, management expertise and infrastructure that will allow for goods to be produced and delivered to market in a cost-effective manner, along with a workforce that is able to output product of a consistent high quality.

    The growth of the steel industry in China has benefited over the last decade or so from its rapid economic development and strong domestic demand.

    More recently there has been a slowing in demand for steel used in construction however, it is the view of industry experts that this is a temporary phenomenon as China continues to grow its domestic market.

    The industry body Worldsteel projects that China will close the gap in the current disparity between it and the United States and Europe in terms of the amount of finished steel products per capita consumed between now and 2035 at which point in time it will be equal to the Unites States and not far behind that of all of Europe.

    This will mean that there will be significant domestic demand for both components and finished goods made from steel.

    The fundamentals of the Chinese economy remain sound and state capital investment in key high steel consumption sectors such as low-cost housing is continuing.

    This is evidenced in a recent Chinese Government “Five Year Plan” where there was an undertaking to build 36 million “social houses” to cater for low-income families.

    Each of these dwellings has to be equipped with a full suite of whitegoods and other appliances, all of which consume value added steel products. This is in addition to the other types of steel that will be used in the construction of the houses themselves.

The CTL Group (CTL) operates as a downstream value added processor of steel and as such the prospects of CTL are significantly tied to the steel production industry itself.
Car parts: By 2020 the aftermarket automotive parts business is forecast to be a AUD$ 280 Billion business annually.

Production capacity in tonnes

80000Steel strip capacity
60000Steel plate capacity
80000Steel pipe capacity