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Chinese steel companies are managing to ride over the tough times with complementary businesses-- The 18th China(Guangzhou) Int¡¯l Plate metal, Bar, Wire, Metal Processing &Setting Equipment Exhibition
10/26/2016 plate metal expo-wire expo |
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China Daily reported that Chinese steel companies are managing to ride over the tough times thanks to complementary businesses. In 2015, largeand medium-sized steel companies in China reported CNY 112.7 billion (USD 6.77 billion) loss in their main business. In comparison, their complementary businesses recorded CNY 48.1 billion''s profit. The complementary businesses of some of the super large steel smelters, such as Baosteel Group, Shougang Group and Wuhan Iron and Steel Group, have reached or exceeded CNY 100 billion. The major complementary businesses of steel companies include high technologies, waste gas recycle, real estate and finance.
Mr Li Xinchuang, president of China Metallurgical Industry Planning and Research Institute said that "Steel covers a wide range of industries, including minerals, recycling, logistics, environment management, finance and steel deep processing, which provide a lot of options for the steel smelters.¡±
Mr Li suggested that the complementary businesses should be part of the steel smelters'' long-term plans. He said that "The complementary businesses can form its own cycle where real estate, trade, new energy and logistics generate sufficient cash flow and profits to support deep processing and waste management. This way, the companies'' portfolio will be more diversified and less reliant on steel, which is facing overcapacity downsizing pressure.¡±
-- The 18th China(Guangzhou) Int¡¯l Plate
metal, Bar, Wire, Metal Processing &Setting Equipment Exhibition
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