It is reported that Shandong Steel parent company of Jinan Steel, Laiwu Steel and new Rizhao Steel announced to launch united purchasing center, sales center, financing center and operation coordination center for all its steelmaking arms and nominated the leaders of the four centers.
Mr Zou Zhongchen Chairman of Shandong Steel said in a recent meeting on reorganization that it’s necessary to carry out the combination of the key businesses and operations among its subsidiaries. The building up of the four centers suggested that Shandong Steel opened the material reorganization.
The inner combination of businesses and operations came soon after the adjustments in personnel, implying the parent company determination. The steelmaker aimed to realize trial operation in end 2009 and official operation in 2010, Mr Zou expressed the target for the four centers.
As per report, after launched in March 2008, Shandong Steel not only completed regrouping Jinan Steel and Laiwu Steel, the two state owned assets but also made the real acquisition of 67% of Rizhao Steel a large private mill in Shandong and China on September 6th. Then, the listed Jinan Steel and Laiwu Steel both released notice of closing share trading in public market on November 9th. Insiders affirmed that Shandong Steel entered into the material reorganization in the aspect of assets.
Shandong Steel noted that this combination would be a reform in its management system and the mill would continue the low-cost strategy to run its businesses next year.
(Sourced from www.sd.xinhuanet.com)
