SteelOrbis Shanghai
Deng Qilin, the general manager of Chinese steel producer Wuhan Iron and Steel Corporation (WISCO), recently updated Chinese and foreign journalists concerning the latest developments at WISCO and also regarding the steelmaker's plans for the future.
Remarking that WISCO was the first giant iron and steel complex to be established after the foundation of the People's Republic of China, Deng Qilin stated that WISCO had some outstanding achievements to its name over the last five years. Its sales income and profit in 2006 had increased by 178.65 percent and 300 percent respectively compared to 2002. In the period in question, the company's independent R&D research doubled, its patented techniques quadrupled, and its average staff income increased by 94 percent. In the January-September 2007 period WISCO achieved profits of RMB 7.4150 billion ($989 million), exceeding the highest historic record which it posted in the corresponding period of 2005. Profits for the whole of 2007 are expected to surpass RMB 9 billion ($1.1980 billion).
The WISCO general manager said that the company would have to speed up the implementation of its enterprise development strategy. He went on to say that a world-class iron and steel enterprise group would be built up by combining with local iron and steel enterprises in central, western and southern areas, by taking advantage of the strengths of partners, and by establishing mills along the coast and in other provinces. The group is aiming to reach a production scale of more than 50 million mt, with strong competitive power in the regional markets.
Furthermore, Mr. Deng said that WISCO would have to make great efforts to achieve three particular goals: Entry into the rank of the World Top 500 by the end of the 11th Five-Year Plan; To achieve comprehensive competitive strength ranking among the top 10 in the global iron and steel industry; To achieve economy of scale ranking among the top three Chinese iron and steel enterprises.
To date, WISCO has developed and perfected its 11th Five-Year Plan, in addition to its medium- and long-term development plans, focusing on mergers with Ercheng Iron & Steel Co., Liuzhou Iron and Steel Co. and Kunming Iron and Steel Group. Meanwhile, WISCO is also implementing its 10 million mt iron and steel project in the city of Fangchenggang, Guangxi, and strengthening its strategic resource base.