The proposed relocation of Shougang Group, also known as the
Capital Iron and Steel Group Company, has raised concerns among
similar Japanese and South Korean businesses. ?
Zhu Jimin, president of Shougang Group,?said in an
interview with the Beijing Morning Post that the relocation
would make the firm the first Chinese company to be located along
the coast. This made transport convenient in line with
international practices of cutting costs.
Because of the move, Japanese and South Korean iron and steel
firms refused to provide advanced technologies to Shougang as they
could become strong competitors. ?
After China's entry into the WTO, many iron and steel
multinationals redoubled their efforts to establish themselves in
the country. Mergers and acquisitions have followed the trends of
the international market.
Zhu said the Chinese steel industry should speed up the process
of mergers and acquisitions and his group would learn from overseas
counterparts and join in world competition.
Shougang Group has increased overseas cooperation including
projects in Australia, the world's main iron ore exporter, which is
facing price pressure in ferrous minerals.
The steelmaker, Beijing's largest steel company and one of the
worst polluters, aims to shut down all operations in the city
within three years.
Under Shougang's current relocation plan they'll cut the annual
output of their Beijing facilities from the current 8 to 4 million
tons by 2008 and stop production in Beijing altogether by 2010.
By then all the production facilities will be moved to Tangshan
in Hebei Province.
(CRI.cn February 9, 2007)