Baosteel
Encyclopedia
Shanghai Baosteel Group Corporation , commonly referred to as Baosteel is a state-owned iron
and steel
company headquartered in Shanghai
, China
.
Baosteel is the second-largest steel producer in the world measured by crude steel output (after ArcelorMittal), with an annual output of around 20 million tons (China's total steel production in 2006 was 381.5 million tons). It employs around 109,000 employees, has annual revenues of around $21.5 billion and produces a mix of high-quality products.
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.
. 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 best engineers and managers, access to cutting edge technology, and receiving hefty government contracts.
Baoshan Iron and Steel also benefitted from the breakneck pace of Chinese economic expansion which ravenously 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 and the Shanghai Meishan Group Co. 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 state-of-the-art 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
.
Iron
Iron is a chemical element with the symbol Fe and atomic number 26. It is a metal in the first transition series. It is the most common element forming the planet Earth as a whole, forming much of Earth's outer and inner core. It is the fourth most common element in the Earth's crust...
and steel
Steel
Steel is an alloy that consists mostly of iron and has a carbon content between 0.2% and 2.1% by weight, depending on the grade. Carbon is the most common alloying material for iron, but various other alloying elements are used, such as manganese, chromium, vanadium, and tungsten...
company headquartered in Shanghai
Shanghai
Shanghai is the largest city by population in China and the largest city proper in the world. It is one of the four province-level municipalities in the People's Republic of China, with a total population of over 23 million as of 2010...
, China
People's Republic of China
China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...
.
Baosteel is the second-largest steel producer in the world measured by crude steel output (after ArcelorMittal), with an annual output of around 20 million tons (China's total steel production in 2006 was 381.5 million tons). It employs around 109,000 employees, has annual revenues of around $21.5 billion and produces a mix of high-quality products.
Baosteel's IPO on the Shanghai Stock Exchange
Shanghai Stock Exchange
The Shanghai Stock Exchange , abbreviated as 上证所/上證所 or 上交所, is a stock exchange that is based in the city of Shanghai, China. It is one of the two stock exchanges operating independently in the People's Republic of China, the other is the Shenzhen 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 ShanghaiShanghai
Shanghai is the largest city by population in China and the largest city proper in the world. It is one of the four province-level municipalities in the People's Republic of China, with a total population of over 23 million as of 2010...
. The Baoshan District
Baoshan District
The Baoshan District of Shanghai has a land area of 424.58 km² and a population of 1,905,000 as of 2010.-Landmarks:Downtown Baoshan is the location of Baosteel's head office. The main campus of Shanghai University is also located in 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 best engineers and managers, access to cutting edge technology, and receiving hefty government contracts.
Baoshan Iron and Steel also benefitted from the breakneck pace of Chinese economic expansion which ravenously 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
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...
. 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 and the Shanghai Meishan Group Co. 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
ThyssenKrupp
ThyssenKrupp AG is a German multinational conglomerate corporation headquartered in Duisburg Essen, Germany. The corporation consists of 670 companies worldwide. While ThyssenKrupp is one of the world's largest steel producers, the company also provides components and systems for the automotive...
of Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
.
The company has ambitious plans for expansion, currently constructing a state-of-the-art facility in Zhanjiang
Zhanjiang
Zhanjiang , formerly known as Tsamkong, Tsankiang, Fort-Bayard, and Kwang-Chou-Wan, is a prefecture-level city at the southwestern end of Guangdong province of Southern China, facing the island of Hainan to the south....
, Guangdong
Guangdong
Guangdong is a province on the South China Sea coast of the People's Republic of China. The province was previously often written with the alternative English name Kwangtung Province...
, 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
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
, on top of its current listing on the Shanghai Stock Exchange
Shanghai Stock Exchange
The Shanghai Stock Exchange , abbreviated as 上证所/上證所 or 上交所, is a stock exchange that is based in the city of Shanghai, China. It is one of the two stock exchanges operating independently in the People's Republic of China, the other is the Shenzhen Stock Exchange...
.
Operations
- 23.8 Mton Shanghai Baosteel Group Corporation (China)
- 16.1 Mton Tangshan (China)
- 14.6 Mton Shagang Group (China)
- 12.0 Mton Wuhan Iron and Steel (China)
- 11.9 Mton Anshan (China)
- 10.5 Mton Shougang (China)
- 10.4 Mton Jinan (China)
- 10.3 Mton Laiwu (China)
- 9.6 Mton Maanshan (China)