Angang to produce for exports
Hong Kong based-steelmaker
Angang, aided by the new capacity increase program conducted by parent company Anshan Steel and Iron Group, plans to increase steel
production by about 3% in 2005 to 5.7 million tons.
Due to a highly competitive domestic market,
Angang plans to increase exports 27% to 1.4 million tons in 2005. The goal of the plan is to increase the share of exports in the company's overall
production to 25%.
Even though the company saw a 22% increase in its steel prices last year its profit margins shrank 2% points on average. Yet, the company increased its net profits 25%, thanks to a 60% increase in its 2004 turnover.
Angangs net profits rose from RMB 1.43 billion ($172.8 million) in 2003 to RMB 1.80 billion ($217.5 million) in 2004. Turnover rose from RMB 14.48 billion ($1.75 billion) to RMB 23.18 billion ($2.8 billion).