Baosteel plans to cut a third capacity

According to Metal Bulletin, one of the Chinese metallurgical companies Baosteel Group intends to reduce production capacities to 30%in the next five years.

In this way, the corporation helps Shanghai to correct the models of expansion and growth to the west. According to the holding, by 2015 the world steel giant predicts to produce up to 5.8 million tons of iron ore, about 6.6 million tons of steel in the Guangdong province, as well as in the Xinjiang Uygur region.

As previously reported, Baosteel 2010, compared with 2010, reduced the profit by 43%. The results of the holding were not the same as planned due to high raw materials. It was planned buy an air cleaner to improve the results of the company.

But, nevertheless, the manufacturer's profit reached 7.36 billion yuan (about 1.17 billion dollars) last year.
It is worth recalling that Baosteel in the third quarter of 2011 compared with 2010, it reduced the profit by 51.3% (1.242 billion yuan - $ 196 million). The beginning of the year marked the net profit of the corporation in $ 995 million.
To date, the Chinese company Baosteel is the leader of the world steel market.