Steel prices spur Shougang profits
Beijing Shougang Co., China's fourth-largest steelmaker, saw a 25% increase in its fourth quarter profits. The companys net income rose from RMB 213 million ($25.74 million) to RMB 267 million ($32.26 million), while sales rose from RMB 4.6 billion ($556 million) to RMB 5.5 billion ($665 million). Company officials say that Shougang will spend RMB 1.9 billion ($230 million) to build a mill in Beijing. The mill will process hot-rolled steel into cold-rolled sheets that would be used in car panels and appliances. Shougang, China's only Beijing-based steelmaker, also plans to move all of its existing steel plants out of the capital by the end of 2010. Shougang and Tangshan Iron & Steel Group, the country's seventh-largest steelmaker, will jointly build a RMB 48.2 billion ($5.82 billion) steel works at Caofeidian, the only deepwater harbor in China's northeast. Shougang will gradually close its smelting and hot- rolling facilities in Beijing and move to the harbor by the end of 2010. Shougan says that the move will not affect production.