Baosteel

For the steel company headquartered in Baotou, see Baotou Steel.
Shanghai Baosteel Group Corporation
上海宝钢集团公司
Government Owned
Traded as SSE: 600019
Industry Steel
Founded 1978
Headquarters Shanghai, China
Key people
 Xu Lejiang
(Chairman)
Products Steel, flat steel products, long steel products, wire products, plates
Revenue IncreaseUS$ 21.7 billion (2009)
Number of employees
 108,914
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
Footnotes / references
[1][2]
Shanghai Baosteel Group Corporation
Simplified Chinese 上海宝钢集团公司
Traditional Chinese 上海寶鋼集團公司
Literal meaning Shanghai Baosteel Group Corporation
Baosteel
Simplified Chinese 宝钢
Traditional Chinese 寶鋼
Literal meaning Baoshan Steel

Shanghai Baosteel Group Corporation, commonly referred to as Baosteel, is a state-owned iron and steel company headquartered in the Baosteel Tower in Pudong, Shanghai, China.[3]

Baosteel is the fourth-largest steel producer in the world measured by crude steel output (after ArcelorMittal), with an annual output of around 40 million tons (China's total steel production in 2012 was 716 million tons[4]). It employs 130,401 employees as of the end of 2012, has annual revenues of around $21.5 billion, and produces a mix of products.[5]

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.

History

Beginning in 1978, the Chinese government began to institute economic reforms. 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 constructing one of the most modern steel plants of the time. As the government's flagship steel company, Baoshan Iron and Steel as it was originally called, benefitted from acquiring the engineers and managers, access to technology, and receiving government contracts.

Baoshan Iron and Steel also benefitted from the Chinese economic expansion which 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 (上海冶金控股集团公司) and the Shanghai Meishan Group Co. (上海梅山集团公司) 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 facility 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.

Operations

The headquarters, Baosteel Tower in Pudong, Shanghai
Beijing Baosteel Tower in Chaoyang District, Beijing

References

  1. ↑ "Financial Statements for Baoshan Iron & Steel Co. Ltd.". Google Finance. Retrieved 2009-12-11.
  2. ↑ "About Baosteel". Retrieved 2009-12-11.
  3. ↑ "Contact Us." Baosteel. Retrieved on November 10, 2012. "ADD:Baosteel Tower, Pu Dian Road 370, Pudong New District, Shanghai, 200122, P.R. China Postal Code:200122" - Chinese: "上海市浦东新区浦电路370号宝钢大厦"
  4. ↑ Annual steel output of China in 2012
  5. ↑ Sirkin, Harold L.; James W. Hemerling; and Arindam K. Bhattacharya (2008-06-11). GLOBALITY: Competing with Everyone from Everywhere for Everything. New York: Business Plus, 304. ISBN 0-446-17829-2.

Resources

External links

This article is issued from Wikipedia - version of the Saturday, January 30, 2016. The text is available under the Creative Commons Attribution/Share Alike but additional terms may apply for the media files.