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Baosteel Co Ltd sells assets Stainless

China Metallurgical Corporation ShanghaiBaosteelGroupCorporation get rid of productive assets, specializing in the production of stainless steel metal and special steels. This was decided at the last (March) meeting of shareholders of Baosteel, which discussed the optimization of the corporation in the difficult conditions prevailing on the world market.

After a study on the competitiveness of stainless steel business in China and in overseas markets, analysts Baosteel considered appropriate to focus the company on a narrow sector of metallurgical production. As a perspective direction of development of corporate management has chosen the direction of carbon steel (which, according to experts Baosteel, the competition is less dense).

After the sale of the stainless Baosteel Co Ltd business and the production of special steels annual capacity of metal production will decrease by about 15% — from 26 th to 22 million tons… But at the same time reducing costs in the aspects of energy consumption and environmental issues that burden the corporation today, will lead to higher rates of profitability in the near future. In addition, the sale of assets management Baosteel plans to bail out decent money -. About 45 billion CNY (Chinese yuan), half of which the potential buyer will make a single payment.

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