China Steel Corp (CSC, 中鋼), the nation’s biggest steelmaker, yesterday agreed at a board meeting to a 3.5 percent increase in salaries this year, effective from Monday next week, as well as an investment of NT$2.59 billion (US$84 million) to replace steam turbine blowers at its No. 1 power plant.

It marks the seventh consecutive year that CSC employees have received a wage increase.

From 2013 to this year, the company has raised wages by between 2.2 percent and 3.5 percent a year, company data showed.

The Kaohsiung-based company said in a statement that the renovation project is to replace the existing old steam turbine blowers with new motor blowers to stabilize molten hot metal capacity, which would help enhance its energy efficiency and meet stricter regulatory requirements.

The project is to start next month and be completed by the end of 2022, CSC said.

The board of directors has also approved a plan to distribute a cash dividend of NT$1.4 per preferred share and NT$1 per common share, based on last year’s net profit of NT$22.45 billion, up 44.7 percent from a year earlier and the highest level in eight years, according to a regulatory filing.

The net profit translates into earnings per share of NT$1.55 based on the 15.77 billion common shares in circulation.

Meanwhile, the board also approved the appointment of corporate planning division vice president Huang Pai-chien (黃百堅) as head of corporate governance with immediate effect, CSC said.

The company is to hold an annual general meeting on June 19 in Kaohsiung, where shareholders are to vote on the proposals.

CSC shares fell 0.6 percent to close at NT$24.85 in Taipei trading yesterday.