HBIS's profit just one third of BaoSteel in 2010
2011-01-20 09:33:39 【Print】
BEIJING (Asian Metal) 20 Jan 11 - According to Wang Yifang, the chairman of Hebei Iron and Steel Group (HBIS), the steel output of the group reached 44.78 million tons in 2010, increasing by 6.4% year on year. The crude steel output continued taking the lead in domestic China, and the operation revenue achieved 220 billion Yuan, up by 24.3% year on year. Annual pre-tax profit was 8.1 billion Yuan and profit was 4 billion Yuan, increasing by 33.3%. However, the profit was just one third compared with 12.8 billion Yuan of BaoSteel.
Wang expressed that the annual crude steel production of the group in 2011 will try to reach 46 million tons, and the operation income and total pre-tax profit of the group to reach 230 billion Yuan and 10 billion.
Recently, Anshan Steel and Shougang Steel have announced that the annual outputs were over 30 million tons in 2010. Although BaoSteel and WISCO have not yet released full-year production data, the annual data of BaoSteel and WISCO will have a long gap compared with HBIS due to they had no significant business acquisitions in 2010. Thus HBIS will continue to be the largest steel enterprise in China.
Although the output of HBIS ranked first in domestic China, the profit of 4 billion Yuan is just one third of 12.8 billion Yuan of BaoSteel, indicating that HBIS just has advantages in the production. Productions of HBIS are mainly about the low value-added, while BaoSteel mainly are based on the high value-added automotive plate, and this was the key reason for the low profit rate of HBIS.
According to the Chairman of HBIS, current differences between HBIS and Baosteel are product structure and the added value of the product. He expressed that the current equipment level of HBIS has reached the ability to produce high quality products, thus he put forward the plan to aim at producting high value-added and first-class products, as well as creating maximize benefit.
After restructuring with Handan Steel and Tangshan Steel, HBIS ranked the first in China last year with the production capacity of 40.2 million tons, and also ranked the second in the world, just inferior to 73.2 million tons of ArcelorMittal. In 2010, HBIS continued large-scale acquisition. In early 2010, HBIS acquired Shijiazhuang Steel from CITIC, which filled gaps of product lines in Hebei Province. At the end of 2010, it acquired some private steel enterprises in Hebei Province, until mid-January 2011, it has incorporated 16 private steel enterprises in Hebei Province, increasing over 1 million tons of production capacity, and the total capacity will reach 60 million tons.
Wang expressed that the annual crude steel production of the group in 2011 will try to reach 46 million tons, and the operation income and total pre-tax profit of the group to reach 230 billion Yuan and 10 billion.
Recently, Anshan Steel and Shougang Steel have announced that the annual outputs were over 30 million tons in 2010. Although BaoSteel and WISCO have not yet released full-year production data, the annual data of BaoSteel and WISCO will have a long gap compared with HBIS due to they had no significant business acquisitions in 2010. Thus HBIS will continue to be the largest steel enterprise in China.
Although the output of HBIS ranked first in domestic China, the profit of 4 billion Yuan is just one third of 12.8 billion Yuan of BaoSteel, indicating that HBIS just has advantages in the production. Productions of HBIS are mainly about the low value-added, while BaoSteel mainly are based on the high value-added automotive plate, and this was the key reason for the low profit rate of HBIS.
According to the Chairman of HBIS, current differences between HBIS and Baosteel are product structure and the added value of the product. He expressed that the current equipment level of HBIS has reached the ability to produce high quality products, thus he put forward the plan to aim at producting high value-added and first-class products, as well as creating maximize benefit.
After restructuring with Handan Steel and Tangshan Steel, HBIS ranked the first in China last year with the production capacity of 40.2 million tons, and also ranked the second in the world, just inferior to 73.2 million tons of ArcelorMittal. In 2010, HBIS continued large-scale acquisition. In early 2010, HBIS acquired Shijiazhuang Steel from CITIC, which filled gaps of product lines in Hebei Province. At the end of 2010, it acquired some private steel enterprises in Hebei Province, until mid-January 2011, it has incorporated 16 private steel enterprises in Hebei Province, increasing over 1 million tons of production capacity, and the total capacity will reach 60 million tons.
