Baosteel eyes giant of 50mln tons production capacity by 2010

The Shanghai Baosteel Group Corporation (Baosteel), the largest iron& steel manufacturer in China, has mapped out its development plan for the 2006-2010 period, said Ms. Xie Qihua, president of the group, on August 12. While keeping its strong competitiveness, the group set its annual production capacity on "working on 30 million tons, aiming at 40 million tons and thinking 50 million tons". The group's production goal by 2010 announced earlier was 30 million tons.

Projects already under construction or soon to be started can guarantee a capacity of 30 million tons by 2010, Xie told reporter. On top of that, the group will, conforming with state industrial policies and economic development needs, build one or two new steel plants, which are quite likely to be located in Brazil which boasts rich iron ore resources and the Zhujiang Delta which enjoys advantages in port, resources and market.

Besides, seizing the favorable opportunity of "cooler" steel sector as a result of the state macro-control, Baosteel considers to purchase or merge with steel enterprises of potential on the international market.

Baosteel's targets of main products on domestic market by 2010 are: over 50 percent for automobile plate; over 40 percent for electric steel and household appliances steel; 40 percent for pipeline steel and 30 percent for steel plate for ship-building and stainless steel. The group will also further expand its business on international market with continuously optimized export products structure. Earlier this year, Baosteel was listed as world top 500 enterprises by Fortune, being the first Chinese manufacturing enterprises on the list.

By People's Daily Online