CHINA / Face to Face
Xie Qihua: Made of Steel
(Beijing Review)
Updated: 2006-01-07 09:56
Developing Under New Rules
On July 20, the New Rules for the Steel Sector was promulgated by the
State Council, giving a clear direction to development of the iron and
steel industry in China. Under the new ruling, the Baosteel Group needs
to find a different method of new development.
Xie has her own opinions. She said that although China's steel industry
output has led the world for nine years in succession, reaching a peak of
273 million tons in 2004, the product structure of China's steel industry
still needs attention. Of this volume, about 60 percent was ordinary
steel, but high-leveled special steel, which is required in the auto
industry, shipbuilding industry and household appliances industry, still
needs to be imported from other countries. The problems facing investment
in China's steel industry also influences healthy development of the
industry as a whole.
Xie thinks the Chinese Government should come up with a steel industry
standard to ensure strict limits to scale, equipment and products'
structure of all steel companies.
The New Rules for the Steel Sector provide support for Xie's ideas,
clearly indicating the boundaries for various steel companies, including
state-owned companies, private companies and foreign-funded companies.
This process allows companies like Baosteel, producing high-leveled
steel, to flourish.
The New Rules for the Steel Sector also allow the construction of two
super steel group corporations with an expected 30-million-ton yearly
output in China. This has given Xie much confidence and she said as the
current output of Baosteel has reached 21 million tons, it is possible to
reach the goal of 30 million tons during the "11th Five-Year Plan" period.
Taking Action
Recently, multinational steel corporations have speeded up their steps to
annex Chinese steel companies. In dealing with this situation Xie said
that Chinese steel companies should try to streamline and optimize their
own operations instead of waiting for purchase by foreign corporations.
She said during the reconstruction and mergers that created Baosteel the
number of staff was reduced from 176, 000 to 90,000 and 10 billion yuan
($1.23 billion) was spent on technological alterations over a seven-year
period. It is only because of their effective reorganization that
Baosteel has power to make acquisitions elsewhere, Xie said.
At present, there are two opportunities for Baosteel--building a
joint-stock plant in Brazil and a new plant in Zhanjiang, Guangdong
Province.
Xie said that the investigation into building the joint-stock plant in
Brazil with CVRD has been basically completed and the item suggestion
report has been authorized by the Central Government. At present, the
Brazilian side is researching local environment, land and the project
status. "Our original plan is to put in 1.5 billion yuan ($187.03
million) but we expect this to increase slightly," Xie said.
At the same time, Xie said the plan to build a plant in Zhanjiang has not
received authorization from the government, but it is in accordance with
the requirement of encouraging steel corporations to invest in coastal
areas, as laid down in the New Rules for the Steel Sector, so she is not
unduly worried about it. Xie also said that the Zhanjiang plan hopes to
combine the reorganization and alteration of such old Guangdong
enterprises as Shaoguan Iron and Steel and Guangzhou Iron and Steel.
Page: 1 2
Most Commented/Read Stories in 48 Hours
Today's Top News
� Three Gorges Dam takes the first strain
� Internet bar fire injured 27, all youths
� 'China should expand military spending'
� Hu urges scientists to help innovation
� China cracks down on exam cheats
Top China News
� Report: Japan to unfreeze loans to China
� China solves insecurity in drinking water
� NPC delegate urges halt of new bank fee
� Japan to end freeze on China aid loan
� China leads world in rainmaking
Alibaba is the largest B2B marketplace in the world. Source model ship,
wooden puzzle, one-piece toilet, RC hovercraft, photo album, prom dress,
pocket bike, Vaginal Speculum, Samurai Sword, String Panty and PVC Pipe.
Learn Chinese, Chinese Mandarin
No comments:
Post a Comment