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Sinosteel predicts US$8.9b sales in 2007

(China Daily)
Updated: 2006-11-21 08:40

The manufacturing of refractory materials, carbon, ferroalloy and machinery equipment are also major sectors to help the corporation reach its goal, Huang said.

Its production chain will be further expanded through purchasing, restructuring and merging domestic enterprises which hold important positions in various industries.

For instance, Sinosteel has taken 50 per cent of the Jilin Carbon Co Ltd, China's largest carbon enterprise, which provides materials to the country's nuclear power plants. "The acquisition of Jilin Carbon is expected to help Sinosteel improve its overall competitiveness in the industry," Huang said.

A large ferroalloy company in Zunyi, Southwest China's Guizhou Province, is also expected to join the industrial group. Negotiations are under way.

With Sinosteel's industrial chain and capital, the firms are expected to manufacture high value-added products to increase their market shares.

Sinosteel, as a whole, does not have a plan to list on the stock market. "However, we have a plan for our subsidiaries to enter the capital market," he said.

Comprehensive subsidiaries, such as the Sinosteel Investment Company and Sinosteel Scie-tech Development Company, will apply for listing on the stock market followed by industrial production subsidiaries involving mining, refractory materials, carbon, ferroalloy and machinery equipment.

(China Daily 11/21/2006 page10)