Major Chinese steelmaker Baowu Group has announced that it has already achieved its outdated capacity elimination target for the current year, eliminating 5.45 million mt so far this year, compared to the 9.97 million mt of outdated capacity it eliminated in 2016. The company also announced that in the January-October period this year it registered an operating revenue of RMB 388.8 billion ($58.9 billion), up 55.4 percent year on year.
According to its plans by 2021, Baowu Group’s annual production capacity will reach a range of 80 million mt to 100 million mt, compared to the current 70 million mt. However, Baowu Group will no longer invest in new production lines, but will increase its capacity through acquisitions and reorganization. For instance, it is currently involved in the reorganization of Chongqing Steel, with the aim of extending its presence along the Yangtze River.