December 04, 2008

Baosteel aiming to be among top 3 global steel makers

It is reported that Baosteel Group will strive to join global top three steelmakers club in 2010.

Mr Xu Lejiang board chairman has revealed the steelmakers strategic target in the following six years. According to him, the steelmaker will shift strategy to high quality products and large scale production and capacity expansion by merger and fresh construction to achieve this goal.

With tight raw materials supply and increased concentration in downstream industries, steelmakers worldwide accelerate capacity expansion to strengthen competitiveness. The foundation of ArcelorMittal has triggered a new round of acquisition rush in steel industry. Besides, giants also strengthen investment to extend industry chain, control resources and realize sustainable development.

As China acts as the world largest steel producer for eleven consecutive years, problems such as overcapacity, unbalanced product mix and low concentration emerge. In the meanwhile overseas steelmakers intensify the overall penetration into Chinas domestic market and reinforce technology locking.

In Iron and Steel Industry Development Policies released in 2005, China urged domestic steelmakers to speed up combinations and claimed output of the top ten steelmakers should account for over 50% of the countrys total in 2010 and over 70% in 2020.

Baosteel thus brings forward its development plan in the coming six years, based on previous plan for the 11th Five Year Plan.

(Sourced from MySteel.net)