Wuhan Iron and Steel doubles its profit
Chinese steel producer Wuhan Iron and Steel has reportedly doubled its profit in 2004 against the profit of last year due to increased steel prices as a result of the strong demand.
Company's earnings increased by 161% to Yuan 7 billion ($845 million) in 2004, when compared with the earnings recorded in the previous year. Sales of the company increased to Yuan 39 billion ($4.7 billion), up by 43% against previous year.
Wuhan Iron and Steel increased its
production by 24% in order to benefit from the higher steel prices.
Crude steel
production of the company has been recorded as 9.3 million metric tons in 2004 however the company plans to increase its crude steel
production to 10.3 million metric tons in 2005. Likewise, steel
production has been recorded as 8.7 million tons in 2004 and this amount is planned to be increased to 9.2 million tons in 2005.
Wuhan Iron and Steel officials stated that the profit target for 2005 is set as the same level of 2004 as they expect rising
manufacturing costs to affect the profit of the company.