BEIJING (MarketWatch) -- Shanghai Baosteel Group Corp., China's largest steel company by output, plans to expand its cooperation with Japan's Nippon Steel Corp. NISTY South Korea's POSCO PKX, +3.70% and Arcelor Mittal MT, +6.21% Baosteel President Ai Baojun said Friday.
Baoshan iron & Steel Co., Ltd. (hereinafter, Baosteel Co., Ltd.), the primary and major industry of outstanding Baosteel Group Corporation (one of Fortune 500 companies), is the biggest production base of high quality iron and steel products in China. Detailed company description & address for Shanghai Baosteel Packaging Co. DOW JONES, A NEWS CORP COMPANY News Corp is a network of leading companies in the worlds of diversified media, news, education, and information services.
'We will strengthen cooperation with the three foreign companies,' Ai said on the sidelines of the National People's Congress, China's annual legislative meeting. He declined to elaborate on the plan.
Ai said Baosteel plans to focus on the domestic market, particularly for mergers and acquisitions, rather than on international activity.
Ai said he expects the company's steel output in 2007 to remain steady from last year's 22.53 million metric tons. However, he added the forecast doesn't include additional capacity from Baosteel's purchase of Xinjiang Bayi Iron & Steel Group.
In January, Xinjiang Bayi Iron & Steel Co. (600581.SH), the listed arm of Bayi Iron & Steel Group, said Baosteel would acquire a 69.61% stake in the Xinjiang-based steel maker for CNY3 billion.
Ai said Baosteel is planning to expand its automotive steel sheet production this year, without specifying whether the expansion would be with its joint venture partners or on its own.
Baoshan Iron & Steel Co. (600019.SH), Baosteel's listed unit, has a three-way sheet steel joint venture with Nippon Steel and Arcelor Mittal in Shanghai.
Ai said Baosteel accounts for more than 50% of China's automotive steel sheet market, and produced 2.6 million tons last year - a combined total between its own production and that of the joint venture.
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