Baosteel plans mergers as China’s production growth cools
China's production growth is expected to slow during the final quarter of 2005 and into the next year. According to Xu Lejiang, President of Baosteel Group, China will see a 25 percent year on year increase in its steel production this year. China had produced 273 million tons of steel in 2004, and it is expected that output will total 340 million tons by the end of this year. At the same time, Baosteel Group's steel production will reach 23 million tons this year, and the group expects to increase the capacity to 30 million tons by 2008. The takeover of several production facilities in Shanghai will help Baosteel achieve this goal. The company also plans to construct a 10 million ton steel plant in the city of Zhanjiagang in southern China's Guangdong province. Beijing, which is closely scrutinizing all expansion plans, has yet to approve the project.