Anshan Iron & Steel Company is targeting top-ranking in the world steel industry within the next three to five years by profiting from the revitalization of China's northeastern region.

The country's move to rejuvenate the Northeast will give fresh support to the steel giant's continuing reform, which is key to its prosperity, said Group President Liu Jie.

As China's oldest iron and steel maker, the Liaoning-based company once was the source of almost all iron and steel products in the country.

But the giant failed to change it's operations to better suit China's transition from a planned to a market economy, lagging behind its domestic counterpart Shanghai Baosteel.

In recent years, however, the steelmaker has made efforts in introducing a new corporate structure, new technologies and management systems to shrink the gap with leading international companies, Liu said.

The country's second largest steel company adjusted its market strategy and focused on high-quality and high value-added products, on which it has the sharpest competitive edge, Liu said.

Its sales income reached 24.56 billion yuan (US$2.97 billion) last year and profits totalled 1.2 billion yuan (US$145 million).

The Group aims to increase its sales income to 35 billion yuan (US$4.23 billion) and double its profits in 2005.

Upgrading all its equipment by 2005 will be a necessary improvement, which will greatly improve its efficiency, Liu said.

The proportion of high-tech products will increase from the current 10 per cent of its total output, which focuses on steel used for cars, rails for high-speed trains and colourplates.

But improved efficiency will mean less employment, which is a big headache for China's State-owned companies.

Liu said they will cut employees in the steel sector to 20,000 from the current 32,800 by 2005.

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