Baosteel takes measures to meet market requirements

Friday, 06 Nov 2009

It is reported that Baosteel, one of the steel giants in China, is now carrying out reformation to respond to the serious overcapacity and fierce competition in domestic market.

During the H1, Baosteel Group changed its branches for specialty common steel, stainless steel and special steel to departments, after which all departments for each product including purchasing, production and sales should strive for focuses.

Before this, its once branched only undertook production while purchasing and sales were managed by difference centers.

An insider said "Sales men could report the market requirements to workers in time, leading to a shorter decision making process a vivid contrast against the former long term decision making. Besides, the steel group also curtails departments to seek a quick process.”

Other steel mills, such as Hebei Iron & Steel Group, also take flexible measures to answer for changes in market. They stick to organizing production as per real demand in the market. Besides, steel enterprises also become aware of the importance of technology innovation as China is still lack of many high end steel products, such as silicon steel, that rely heavily on imports. In the mean time, the nation is plagued with overcapacity of low end overcapacity.

Mr Xu Lejiang chairman of Baosteel was quoted as saying that "We are now still under negative influence of the global economy crisis. Baosteel can reduce investments in new project but will never slow down the pace of research investments."

(Sourced from MySteel.net)
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