Baosteel
From Wikipedia, the free encyclopedia
| Shanghai Baosteel Group Corporation 上海宝钢集团公司 |
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| Type | Government Owned |
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| Founded | 1978 |
| Headquarters |  Shanghai, China |
| Key people | Xie Qihua, Chairwoman of the Board of Directors Chen Quanxun, Chairman of the Board of Supervisors Xu Lejiang, President and Director |
| Industry | Steel |
| Products | Steel Finance Coal Processing Engineering |
| Revenue |  US$14.5 billion (2004) |
| Employees | 32,000 |
| Subsidiaries | Baosteel Group Finance Co. Fortune Trust & Investment Co. Shanghai Baosteel Engineering & Equipment Co. Shanghai Baosight Software Co. Shanghai Baosteel Chemical Co. Shanghai Baosteel Business Development Co. Baosteel Group Enterprise Development Co. |
| Website | www.baosteel.com |
Shanghai Baosteel Group Corporation ( SSE:600019 Chinese: 上海宝钢集团公司; pinyin: Shànghǎi Bǎogāng Jítuán Gōngsī), commonly referred to as Baosteel (Chinese: 宝钢; pinyin: Bǎogāng) is the largest Chinese iron and steel conglomerate. It is a state-owned enterprise, headquartered in Shanghai.
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[edit] History
After the disasters of the Great Leap Forward and the Cultural Revolution, the Chinese government began to institute economic reforms in the 1970's. Plans called for a large integrated steel production facility to be located near the port of Shanghai. The Baoshan District, a suburb of Shanghai, was chosen as the site and Japanese assistance was enlisted in contructing one of the most modern steel plants of the time. As the government's flagship steel company, Baoshan Iron and Steel (Chinese: 宝山钢铁（集团）公司; pinyin: Bǎoshān Gāngtiě (Jítuán) Gōngsī) as it was originally called, benefitted from aquiring the best engineers and managers, access to cutting edge technology, and receiving hefy government contracts.
Baoshan Iron and Steel also benefitted from the breakneck pace of Chinese economic expansion which ravenously consumed all the steel available. However, with the continuing liberalization of the Chinese economy, Baoshan found itself in competition with new rivals, both foreign and domestic. The company decided to add an export trade marketing component to remain competitive; it scored notable success in South Korea. Although hurt by the Asian financial crisis, Baoshan pushed through with a merger of other money losing state owned enterprises, though it had managed to remain profitable itself. On November 17, 1998, the former Baoshan Iron and Steel (Group) Corporation absorbed the Shanghai Metallurgical Holding Group Corporation (Chinese: 上海冶金控股（集团）公司; pinyin: Shànghǎi Yějīn Kònggǔ (Jítuán) Gōngsī) and the Shanghai Meishan Group Co. (Chinese: 上海梅山（集团）公司; pinyin: Shànghǎi Méishān (Jítuán) Gōngsī) to form Shanghai Baosteel Group Corporation. The new conglomerate was the largest steel producer in the country with annual steel production of nearly 20 million tons.
Baosteel also found partnerships with former domestic rivals in the Shougang Group and Wuhan Iron and Steel Group Corporation, entering into an alliance in 2001. In the same year Baosteel signed an agreement with ThyssenKrupp of Germany.
The company has ambitious plans for expansion, currently constructing a state-of-the-art facilty in Zhanjiang, Guangdong, at the cost of $10 billion; it is expected to come into production by the end of the decade. Baosteel also intends on launching an IPO, likely in Hong Kong, on top of its current listing on the Shanghai Stock Exchange.
[edit] Industrial Scope
Baosteel is the 6th largest steel producer in the world, ranked by sales (see list of steel producers). It is the largest steel producer in China, with a crude steel production capacity of about 20 million tons. China's total steel production for 2006 was 381.5 million tons.
Baosteel's IPO on the Shanghai Stock Exchange in 2000 was the largest in China up to that time, raising CNY 7.7 billion despite being limited to domestic investors only.
