Tangshan Iron and Steel Corporation Ltd. in Hebei Province has announced an estimated steel output of 10.06 million tons for 2005, up 21 percent year on year.

The company became the province's first steel maker with an annual output topping 10 million tons.

Its sales revenues reached 30 billion yuan (3.7 billion U.S. dollars), and pre-tax and net profits stood at 3.8 billion yuan 1.9 billion yuan, respectively, the company said in a statement.

2005 was a "doom year" for China's steel industry as the government was working to reduce overcapacity in the sector.

The China Iron and Steel Industries Association said profit growth of the whole industry fell 52.2 percentage points in the first ten months of 2005, with a drop of 30 percentage points estimated for the full year.

Tangshan steel company said in an earlier report that it succeeded in reducing wastage and other losses.

Industry insiders said after three years of overspeed development, China's steel sector is entering a stable growth period, and the myth of "fat profits" will be over.

Iron and steel plants would grapple with each other in the market by increasing product varieties and improving quality and services.

Besides Tangshan, Hebei plans to build another iron and steel base in Handan, sources say.

Source: Xinhua