Baosteel to ramp up output of crude steel
(Shenzhen Daily/Agencies)
Updated: 2005-09-20 11:10

China's largest steelmaker, Baoshan Iron & Steel Co. (Baosteel), has unveiled plans to ramp up output of crude steel to 30 million tons a year by 2008 and buy up manufacturing facilities in Shanghai.

The new strategy was laid down by Baosteel Group chairwoman Xie Qihua, the China Daily said on its Web site Sunday.

As part of the plan, the company will purchase existing steel-manufacturing facilities in Shanghai and surrounding regions rather than build new production lines, the report said.

Group general manager Xu Changjiang said Baosteel would turn out 23 million tons of crude steel by the end of this year, with revenue of steel and related businesses reaching 120 billion yuan (US$14.48 billion).

According to the newspaper, Baosteel, a key supplier of the nation's auto industry, is also applying to build a new steel factory in Zhanjiang, a coastal city in the southern province of Guangdong, where demand is high.

It said annual production of the new factory could reach 20 million tons.

Baosteel's first-half net profit has jumped 49.06 percent year on year to 7.15 billion yuan on the back of steady growth in demand for steel products.