Mar 5 2009
In active response to "Steel Industry revival plan" with an effort to optimize the domestic layout of steel industry and adjust its structure, strength and grow Ningbo Iron & Steel Co., Ltd. and enhance its core competitiveness, Baosteel Group Corporation and Hangzhou Iron & Steel Group Co. signed an agreement yesterday to restructure Ningbo Iron & Steel Co., Ltd.
Chairman Xu Lejiang of Baosteel Group Corporation, Party secretary and chairman Tong Yunfang of Hangzhou Iron & Steel Group Co. signed "Agreement to buy stocks of Ningbo Iron & Steel Co., Ltd." and "Joint venture contract for Ningbo Iron & Steel Co., Ltd." on behalf of the shareholders respectively. Vice governor Jin Deyong and SASAC chairman Chen Zhengxing of Zhejiang Province, deputy Party secretary and mayor Mao Guanglie, executive vice mayor Wang Yong of Ningbo City, president He Wenbo, vice president Ma Guoqiang and Zhou Zhuping of Baosteel Group Corporation, vice president Cui Jian of Baoshan Iron & Steel Co., Ltd., vice chairman and president Li Shizhong of Hangzhou Iron & Steel Group Co.,, as well as the principals of the authorities concerned of Zhejiang Province and Ningbo City and the relevant personnel of Baosteel, Hangzhou Steel and Ningbo Steel attended the signing ceremony.
Located in Ningbo Economic & Technological Development Zone, Ningbo Iron & Steel Co., Ltd. is close to Beilun port, one of the top 10 deepwater ports in the world, enjoying the geographical advantages for resources and port. Ningbo Iron & Steel Co., Ltd. was formally founded in July 2006, and its first blast furnace was put into production in May 2007. With an annual steel production capacity of 4 million tons, it has planned hot-rolled sheets, cold-rolled sheets and galvanized sheets as its main products. According to the agreements, Ningbo Iron & Steel Co., Ltd. has a registered capital of RMB 3.6 billion yuan, in which Baosteel will hold 56.15% stake and Hangzhou Steel will hold 43.85% stake. The joint venture will stick to the operating policy of "driving by market demand with low cost and high efficiency", adopt leading technologies and equipment as well as scientific management methods to produce and sell products meeting the demands in the markets at home and abroad, and provide relevant supporting services.
The official signing of the agreements between Baosteel and Hangzhou Steel marks a new developing stage for the construction of Ningbo Iron & Steel Base. It is an important measure by Zhejiang Province, Baosteel and Hangzhou Steel to optimize the domestic layout of steel industry and adjust its structure, as well as a specific action to implement scientific outlook on development and follow a new road of industrialization with sustainable development. It has a profound influence on strengthening and growing Ningbo Iron & Steel Base, driving the development of steel industry in East China, promoting the cross-regional consolidation of steelmakers in China and elevating the general competitiveness of Chinese steelmakers.
He Wenbo said in the speech that, Baosteel will fulfill its commitments to give full play to the advantages of both parties, especially the coastal resources advantages of Ningbo, and render powerful support to Ningbo Iron & Steel Co., Ltd. in terms of management, technologies, raw material purchase and sales. We are sure that Ningbo Iron & Steel Co., Ltd. will be built into a modernized steelmaker with complete facilities, first-rate equipment and leading technologies whose technological content of products, intensive application of resources and environmental protection reach domestic leading level, and will become an exemplary base for industrial transforming and upgrading, connotative and intensive development of Zhejiang Province. Furthermore, Baosteel is willing to expand the fields of cooperation with Hangzhou Steel, further drive the cooperation in assets operation, technical exchange, sales channels and management training between the two steel groups to boost the sound and rapid development of both parties.
Jin Deyong pointed out in his speech that Baosteel as the flagship steelmaker in China is powerful in strength, leading in technologies and high in profitability, while Ningbo enjoys the geographical advantages for port and market. The restructuring of Ningbo Iron & Steel Co., Ltd. by Baosteel and Hangzhou Steel is a strategic measure of mutual benefit and win-win, and injects strong stamina for the development of Ningbo Iron & Steel Co., Ltd. Zhejiang Province and Ningbo City will provide further service to create favorable conditions for the development of Ningbo Iron & Steel Co., Ltd. We are sure that Ningbo Iron & Steel Co., Ltd. will achieve leaping development and excellent performance.