Sinosteel Corporation, China's major State-owned metallurgical and mineral resources provider, vowed to beef up its efforts in the overseas market this year.
The Beijing-based company plans to reinforce its five key overseas business units in the Hong Kong Special Administrative Region, Australia, South Africa, Germany and India, said Sinosteel President Huang Tianwen.
According to Huang, "These overseas affiliates will be Sinosteel's strategic platforms to help it boost international operations."
They should have stable resource bases, annual sales of at least $100 million each and relatively good profits, he said.
The overseas market is very important for Sinosteel, he explained, as a result of economic globalization, the saturation of many industries and insufficient energy and resources at home.
Huang expects the overseas market will account for half of Sinosteel's total sales in the future. Last year, the ratio stood at only one-fifth.
Sinosteel India
The company's Indian business unit, called Sinosteel India, was formed in July 2005 in New Deli, in response to China's strategy of "Going Global."
Sinosteel India is mainly engaged in development of metallurgical mineral resources, trading and logistics of metallurgical raw materials and other related products as well as the supply of metallurgical technology and equipment.
It has set up three branches within the resource-rich country, in Goa, Kolkata and Hospet.
Sinosteel India has made considerable business progress since it was launched.
To form closer ties with the Indian Government and local industries, Sinosteel India has joined a slew of organizations in the South Asian nation, such as the Federation of Indian Chambers of Commerce and Industry, Federation of Indian Mineral Industries and Sino-India Trade Center.
In 2006, Sinosteel India took part in or co-organized several major business events in India, such as an international metallurgical technology and equipment fair, international steel industry conference, international mining conference and Sino-Indian economic, trade and investment cooperation summit.
To further promote Sinosteel's image, Sinosteel India will organize a Chinese commodity fair in the country in 2007, as the year has been entitled the "Sino-India Tourism Year" by the Chinese and Indian Governments.
Development strategy
Huang said Sinosteel will further consolidate its five core industries - mining, carbon, refractory, ferroalloy and equipment manufacture - this year, through mergers and acquisitions, to lay a solid foundation for the group's future development.
Sinosteel aims to be qualified to become one of the world's top 500 multinational companies around 2010, he said.
"We will strive to build Sinosteel into an internationally influential and competitive large group," said Huang.
Sinosteel aims to report about 83 billion yuan in 2007 sales, he said, up from 61 billion yuan last year.
e said the group's profits last year exceeded its previous target, without elaborating.
Sinosteel will establish a specialized unit to combine its resource development at home and abroad this year, he said, to play a bigger role in feeding China's economic growth.
The group will act to enhance its ability in independent research, design and innovation this year, he said.
According to Huang, Sinosteel will make a plan this year to enter the capital market in an effort to ensure its sustainable development in the long run.
The group expects to have five listed companies in its five core industries within the next three to five years, he said.
Meanwhile, he said, its two other affiliates - Sinosteel Investment Co and Sinosteel Science & Technology Co - will be allowed to float in the stock market.
Profile
Sinosteel is a central enterprise under the administration of the State-owned Assets Supervision and Administration Commission (SASAC), China's top State asset watchdog.
It ranked No 27 by sales last year among more than 100 enterprises under SASAC's administration.
Established in 1993, it now has a total of 62 subsidiaries, with 43 based at home and 19 abroad.
The company's main businesses include development and processing of metallurgical mineral resources, trading and logistics of metallurgical raw materials and products, and related engineering technical services and equipment manufacture.
It is a clearly positioned enterprise providing comprehensive auxiliary services to the steel industry.
Sinosteel is one of the first State-owned enterprises to "go global" in response to the State's calls.
It has made a success in establishing iron and chrome ore bases in Australia and South Africa, providing abundant resources for China's sustainable development.
The company has a global sales and logistics network. It is the raw material supply and sales agent for major Chinese steel makers, and has formed long-term strategic partnerships with some of these steel mills.
It has a leading position in trading volume of iron and chrome ore, fluorspar, coke, manganese ore, scrap steel, finished steel products, magnesite and rare earth in China.
Sinosteel's scientific and technical enterprises have a strong research and development ability in such fields as geological exploration, beneficiation, heat engineering, environmental protection, refractory materials, metal products and engineering design.
Owning many intellectual property rights, they accommodate 10 State-level research centers and are qualified to carry out master's- and doctorate-level education.
As a result of the industrialization of their research findings, Sinosteel has built several production lines with products prevailing in domestic and overseas markets.
The group is also qualified to undertake project engineering, construction and auxiliary supply.
As the agent for many Chinese and foreign equipment and technology providers, it offers financing and bidding services for big Chinese steel companies on process modification.
(China Daily January 26, 2007)