The restructuring of Beijing-based Sinosteel as a part of China Baowu means it will no longer be a centrally administered state-owned enterprise under the supervision of the Assets Supervision and Administration Commission. — China Daily
BEIJING: The restructuring of Sinosteel Group Corp Ltd will further improve the structure of China’s steel industry and bring stability to the commodity’s prices in the years ahead, market observers say.
Their comments were in response to the announcement by the state-owned Assets Supervision and Administration Commission (Sasac), the country’s top State asset regulator, that Sinosteel has been integrated into Shanghai-headquartered China Baowu Steel Group Corp, or China Baowu, the world’s largest steel conglomerate by sales revenue.
Approved by the State Council, China’s Cabinet, the restructuring of Beijing-based Sinosteel as a part of China Baowu means it will no longer be a centrally administered state-owned enterprise (SOE) under the supervision of the Sasac.
Founded in 1993, Sinosteel develops and processes metallurgical and mineral resources, metallurgical raw materials, trades in products, provides logistical services, offers related engineering technical services and operates equipment manufacturing businesses.
Sun Liancai, senior vice-president of Beijing Alliance PKU Management Consultants Ltd, said the restructuring of Sinosteel will strengthen the industrial chain resilience of China Baowu and boost the latter’s steel production capacity and facilitate its goals of producing 200 million tonnes of crude steel annually by 2025.
With the Sasac’s green light, China Baowu took Sinosteel into its stewardship in October 2020.
China Baowu has been gradually integrating a number of local iron and steel companies such as Jiangxi province-based Xinyu Iron and Steel Group, Shanxi province-based Taiyuan Iron and Steel Group, and Chongqing Iron and Steel Co Ltd.
The strong profitability of China Baowu will reinforce Sinosteel’s earnings strength, said Zhang Tieshan of the marketing department of csesteel.com, a Shanghai-based eCommerce and trading platform. — China Daily/ANN
