Sunday, March 8, 2009

Shougang "Well-Equipped For Global Competitiveness"

Mr Zhu Jiming, president of the Beijing based steelmaker, Shougang, announced to reporters at the sideline of the National People's Congress that his company, "is well equipped for global steel competitiveness now."

This comes despite the global financial crisis and falling Chinese steel exports. Mr Zhu explained that his confidence comes from the company's rapid development over the past few years as well as Beijing's firm stance in bolstering its steel industry. He said that "This and next year will be difficult for us, but we will realise fast expansion from 2011 onwards."

Production capacity in Shougang's Beijing old factory has been shut down by half, with the remaining 4 million tonnes to be closed completely by 2010; while its new plant at Hebei Caofeidian has completed its first stage of construction with annual steel capacity of 4.85 million tonnes. This will be put into operation in April.

The second phase project is slated to go commissioning by the end of 2010, bringing the total steel capacity of the new plant to 9.7 million tonnes. The steel plant would boast world first-class equipment and technology level after all projects are complete.

As a state run steel mill, Shougang has been undergoing self-innovation to prepare for global competitiveness. The mill acquired an iron ore mine in South America as early as the 1990s, and recently bought another mine in Australia as well as becoming the biggest shareholder of a large-scale coal group.

Source: Steel Guru

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