Sinosteel branches out to cover all bases
Updated: 2008-03-25 10:11
"By enhancing our manufacturing capacity, we can provide better service to our customers. We will continue to look for further investment opportunities in this area," Huang said.
Sinosteel has also formed close ties with big domestic steelmakers. Last year, it signed a deal with China's largest steelmaker Baosteel for the two companies to boost cooperation on the supply of iron ore and chrome ore, ferroalloy and mining equipment.
Huang expects more consolidations ahead in the domestic steel industry, with the bigger players likely to dominate the market. He said Sinosteel's relationship with the industry majors puts it in a good position.
Sinosteel was one of the first Chinese companies to do business overseas. Huang said the steel company plans to ramp up its overseas activities, including developing mining resources in countries like Australia, India and South Africa.
It already has 21 subsidiaries and two representative offices operating overseas and has established itself in the Southeast Asian, Australian, African, European and South Asian markets.
Headquartered in New Delhi, Sinosteel's Indian subsidiary is the first solely owned China-funded company approved by the Chinese and Indian governments.
Sinosteel India has three branches - in Kolkata, Goa and Hospet. Its main activities involve developing metallurgical mineral resources, trading and logistics, engineering technology services, equipment manufacturing and industrial investment projects.
Mining resources development is Sinosteel's main overseas business focus. The company's Channar iron ore manufacturing project is the largest industrial project between China and Australia.
The project has been operating successfully for 17 years and has produced a total 150 million tons of iron ore. All of its products have been sold to the Chinese market.
In South Africa, Sinosteel's 50-50 joint venture with Samancor, one of the world's largest chrome ore owners, can turn out 1 million tons of chrome ore and 310,000 tons of ferrochrome annually.
Huang sees it as a win-win venture. Samancor has rich chrome ore resources and Sinosteel has the advantage in technology, marketing, management and fundraising.
"We have adopted many global standards in our business, which will make our company more multinational," Huang said.
"Our overseas projects also help local economic development. For instance, they help to increase local government tax revenue and open up many job opportunities."
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