Baosteel Group Ningbo Iron & Steel Implements 100-day Consolidation Plan
07/13/2009 - Baosteel Group Ningbo Iron & Steel has successfully implemented its 100-day consolidation plan, as evidenced by the company’s announcement that it had achieved gross profit in June.
Baosteel Group Ningbo Iron & Steel Co., Ltd. has successfully implemented its 100-day consolidation plan, as evidenced by the company’s announcement that it had achieved gross profit, making up late last month for the company’s ongoing deficit.
Over the past three months, Ningbo Steel’s operation has improved from no marginal contribution before the consolidation to a current gross profit, making up the deficit in June. The company also reduced total costs by RMB 134 million yuan (excluding the impact of market prices) from March to May.
Baosteel is taking control of Ningbo Steel as part of its active response to the state’s "Steel Industry revival plan". The move will help the company to implement development strategies of ‘premium steel at the corporate scale’ by merging and restructuring as well as building new facilities as needed.
Against the adverse situation of the ongoing market crisis, Baosteel decisively determined and rapidly implemented the merger and acquisition of Ningbo Steel. Ningbo has made a number of achievements within the 100-day consolidation, in line with the Group Corporation target of "setting an example for Baosteel's merger and acquisition."
