Value Creation

Product and Quality Management

CT was originally a manufacturer specializing in traditional steel structure fabrication. In recent years, it has actively expanded into the offshore wind power industry by combining its existing technologies with the learning and application of new production processes, leading to a gradual increase in the output of offshore wind power equipment that has exceeded the proportion of traditional steel structure production.

Among all products, the items generating the largest share of revenue are wind power steel structure projects, steel structures for industrial plants, steel structures for public works, and steel structures for tall buildings. Traditional steel structure manufacturing primarily focuses on tall buildings and factories and office buildings, each with different completion cycles. Tall buildings have a cycle of two years, while factory and office buildings are generally completed within one year.

Major Use and Production Capacity of Premium Products

1. Major use of premium products:

2. Industry structure and supply and demand

The traditional steel structure industry is highly domestic‑demand driven and is particularly influenced by the construction sector, manufacturers’ plant construction, and the release of government public infrastructure projects, and in recent years, government efforts to promote energy-saving and carbon reduction policies, Green Buildingsas well as the seismic resilience of steel structures, have been conducive to the promotion of the steel structure market.

The upstream, midstream, and downstream sectors of the offshore wind power industry are equipment manufacturing, integrated services, and power generation, respectively. CT is positioned in the upstream segment of component manufacturing and primarily produces underwater foundation jackets and pin piles for offshore wind turbine bases.

Sales Application

During the reporting period, it was confirmed that 100% of products manufactured in Taiwan were sold domestically. In terms of overseas markets, the Myanmar subsidiary has two operational objectives. The first is to collaborate with the Myanmar government on infrastructure engineering projects, including steel processing, construction, roads, railways, and ports. The second is to support Taiwanese investors’ plant-construction needs. In recent years, rapid growth in foreign investment in Myanmar has driven a significant increase in domestic steel demand, and the overseas Myanmar plant will redouble its efforts to secure engineering opportunities in various Myanmar construction projects, leveraging the substantial demand during the development phase to create new opportunities for CT.

1. Regions of sale of premium products

2. Cumulative total weight over the years (tons)

Item	Weight   (tons)
others	30,900
Wind power	231,177
Manufacturing Plants	273,531
Electronic Plants	412,014
Factory and Office   Buildings	2,118
Buildings	448,131
Public work projects	312,877
Bridge construction	44,923
Total	1,755,671

ž   Product Manufacturing Process

Quality Management System（QMS）

Since its establishment, CT has upheld a spirit of diligence and the principle of putting quality first, emphasizing quality and cost management while also ensuring environmental protection and safety. Accordingly, the Company adopted the ISO 9001 international quality management system framework to establish its quality management system and, in accordance with ISO 3834 certification requirements, strengthened its welding engineering management standards, ensuring that all processes within the system’s scope interact effectively and are executed efficiently, continuously refining its management processes and product quality.

ž   Management Approach

Guided by a policy of enhancing quality, and under this principle, costs are reduced and optimal profits are generated.

CT’s senior management carefully assesses the internal and external operating environments and the Company’s vision, then formulates the Company’s business policies and allocates sufficient resources to each process to carry out management activities. In each process, with customer satisfaction as the goal, employees proactively ensure that production lines operate smoothly to produce products of excellent quality.

Supervise the measurement and data analysis of all products and processes, and, through implementation of activities such as internal and external audits, corrective actions, preventive actions, product quality and process improvement projects, and management reviews, uphold our high quality standards and pursue continuous improvement.

CT uses the PDCA cycle as its core methodology and has established an improvement project system to develop corrective actions for the current situation and root causes of problems. The Company’s QMS operation flowchart is as follows:

ž   Improve Quality Capabilities

Going forward, the Company will continue to uphold sustainable management guided by “technical expertise, passionate service, self‑transcendence, and quality first,” commit to providing high‑quality products, aim to create the greatest profits at the lowest cost, build an outstanding reputation and core competitiveness, and continue to implement the following action plans:

1. Implement various certification standards, improve production processes, and increase production efficiency

(1)              Addition of production equipment to enhance production capacity, design for process improvement and allocation of production equipment to upgrade the utilization rate of equipment and production efficiency.

(2)              Integrate production performance through strategic alliances with subcontractors; outsource works beyond steel structures to the subcontractors for production efficiency and effectiveness, upgrade competitive power, and increase market share.

(3)              Introduce-state-of-the-art automated production equipment and structural test equipment to increase production capacity and product structure quality, in order to enhance competitiveness in production.

2. Enhance staff training, introduce professional talent, cultivate young cadres, and strive for ISO high-level and offshore wind power underwater foundation technology certification to improve the company's technical skills, brand image and management performance. From the start of their employment, new employees are immersed in the Company’s culture of quality and awareness, enabling them to embody the spirit of company policies and uphold the Company’s high quality standards. There were 16 participants at ISO and quality training, with a total duration of 8 hours.

3. In accordance with the welding quality requirements of ISO 3834‑2 and EN ISO 1090‑1/EN ISO 1090‑2, CT provides channels for employees to obtain welder qualifications and inspector certifications, establishes inspection procedure manuals, and implements them in accordance with the standards. Each product undergoes strict quality control during the production process, with nondestructive testing at every critical stage. In addition to internal self‑inspections, professional third‑party inspection agencies conduct re‑inspections to ensure product quality meets international standards and fulfills customer requirements and recognition.

Number of people who obtained welder certificates in 2024

Number of people who obtained non-destructive testing personnel qualifications in 2024

4. Daily quality audits: In 2024, 11 daily audits were held with a total of 23 participants. Daily production line inspection audits were promoted, deficiencies were reviewed on site, and improvements were tracked and completed within the prescribed period to facilitate continuous improvement of the Company’s management system.

ž   Practice Quality Application

To comply with the EU and client requirements related to offshore wind power, which mandate retaining traceability in the production process, CT has established a comprehensive production tracking system: plate numbers, welding material batch numbers, welder IDs, gauge and instrument serial numbers, processing and inspection dates, etc., are all recorded in detail. From incoming material inspections through to finished products, the manufacturing and inspection procedures comply with the EU’s highest quality requirements, effectively demonstrating a robust welding quality management system, and have been certified by Germany’s TÜV Rheinland, concretely reflecting the Company’s commitment to welding quality.

One of the 2024 quality targets was the “Full Penetration Welding Defect Rate”, which was successfully kept below 2% and showed an improving trend compared with previous years. This achievement is attributable to the efforts of all employees. Going forward, the Company will continue to uphold its quality policy and strengthen its quality objectives.

2024 Quality Target Achievement Status:

Localized Production

All of CT’s products, except those manufactured by its Myanmar subsidiary, are produced on Taiwan’s main island to implement localized production.

 CT has built on many years of experience in steel structure fabrication and adopted international supply chain management and mature European underwater foundation manufacturing technologies. CT has also consistently supported and actively participated in the government initiative to localize the offshore wind industry supply chain from demonstration incentives and potential plant sites to the 10-year regional development policy. By introducing these technologies, we hope to accelerate the localization of the wind turbine industry supply chain, increase job opportunities, upgrade and transform local industries, and retain professional expertise and quality talent in Taiwan. Use Taiwan as the development base for offshore wind power, further expand into the Asian market, become a key player in Asia’s future wind power development, and create sustainable energy development.

The welding techniques learned from overseas have been applied to the Pin Pile, Jacket, Wind Tower, Monopile, and Transition Piece processes. It is hoped that in the future they can be more broadly applied to various products, enabling more local manufacturers to acquire the related technologies, thereby keeping job opportunities in Taiwan.

Looking ahead to three future phases: the first phase of mastering the technology has been completed; the second phase of increasing production ratios is under way; and Century Green Energy Vocational Senior High School has been brought in to train local welding talent in preparation for the third phase of popularizing domestic technology.