Baosteel boosts renown through participation in key projects

Tuesday, 03 October 2006 11:32:43 (GMT+3)   |  
       

Though Baosteel is still the number one steelmaker in China, its pre-eminent position is facing more and more challenges from the other big domestic steel mills. Simultaneous with the new merger trend among China's steel mills, some of the new combined companies such as Angang & Bengang and Laigang& Jigang, have set their sights on being China's most important steelmaker. The challengers have even been so bold as to declare openly that their goal is to exceed Baosteel in terms of output. In its efforts to see off these challenges, Baosteel has taken many steps to strengthen its leading status. Besides expanding capacity, merging with other mills and improving technological levels, Baosteel has made great efforts to improve its renown and reputation. The company's strategy is to participate in and support key projects as steel supplier, with increasing attention paid to areas of specialization. In the past, Baosteel was interested in participating in famous projects by supplying basic steel products. Now, the steel giant prefers to show its great comprehensive R&D and production power in fields that were not considered to be Baosteel specialization areas. A number of the specialization fields in question are listed here below: Buildings The most famous building construction in which Baosteel has participated to date in China is that of the National Stadium for the 2008 Olympic Games. This world famous “nest” project attracts world's attention and Baosteel gained in renown through its involvement. Another famous project is the world's tallest building - the Shanghai World Finance Center located in the Lujiazui Finance and Trade Area in Shanghai - which stands at a height of 492 meters. From 2004, Baosteel supplied around 28,000 tons of steel for this building. This figure included 4,000 tons of SN490, which is researched and developed by Baosteel itself according to Japanese anti-seismic norms. Space flights Baosteel's special steel was used in the manufacture of the famous Shenzhou series of spaceships. Though the quantity of steel in question was very small, it gave evidence of Baosteel's high technological advances in steel. From Shenzhou I to Shenzhou VI - in addition to China affirming its place in the world's most exclusive space club - Baosteel also entered a new field of future promise. Bridges Steel used in bridge-building includes wire rod, wire rope, reinforcing bar, plate, coil, etc. Of these, the high-end market for wire rope used to be, and still is to some extent, mainly the domain of imported products. Baosteel targeted this market and managed to effect a change in the situation. The Xihoumeng Bridge in Zhoushan is the longest suspension bridge in China and the second-longest in the world, with a main arc which spans 1,650 meters. Baosteel supplied this bridge with all the required types of steel including high-tension wire rope. Following this success, Baosteel's wire rope received a greater welcome in the bridge building industry. Baosteel is also trying to manufacture products in other new fields in which domestic steel products have so far not been widely used. This strategy can be summarized as, “Be in possession of what your rivals don't possess, be expert in what your rivals do possess.” Though Baosteel's output may be exceeded by a combination of other mills, it is unlikely that its reputation and comprehensive production will be surpassed in the immediate future.

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