Bloomberg reported that Baosteel Group Corp, China’s biggest steelmaker is facing its most difficult period since its founding 30 years ago as global economies grapple with a slowdown and credit crisis.
Mr He Wenbo General Manager of Baosteel said that Baosteel’s output, sales and profit has plunged and the company should cut capital expenditure. He said that “We should adjust our production sales strategy rapidly. We also should reduce or adjust the fixed asset and long term investment scale of the group.”
Mr He Wenbo pointed out at that the steel maker’s output has already dropped, implying the steel maker’s operation has been impacted by market pressure. He said that “Its stainless subsidiary halves output this month while steelmaking plant and special steel subsidiary both launch overhauls.”
He suggested Baosteel should take countermeasures, such as adjusting production and sales strategy, regulating the scale of fixed assets and long term investments, monitoring the implementation of various investments and improving risk management system. He added that "We should pay close attention to dynamics of steel and relevant industries at home and abroad, grasp market opportunities, participate in M&As and consistently carry on Baosteel development plans on steel and relevant industries."