Wuhan Steel Turns to Non-Steel Businesses for Growth
OREANDA-NEWS. March 14, 2012. The sales margin of Chinaбпs steel industry has been less than 3 percent for the past two years in a row, and noticeably plunged to between 0.4 percent and 0.5 percent in the final quarter of last year.
Wuhan Steel general manager suggested China encourage the exports of high-end steel products including cold rolled steel and silicon steel by offering different tax incentives such as increasing VAT refunds for certain types of steel.
Inside the company, it plans to invest 39 billion yuan between 2011 and 2015 exclusively into its non-steel portfolio such as new- and high-tech, deep processing, mining and logistics. Last year, its non-steel sectors generated a profit of 2.1 billion yuan out of the 3.6 billion yuan the group earned last year. By 2015, Wuhan Steelбпs revenues generated from its non-steel businesses would account for more than 30 percent of its total revenues, with a production value topping 110 billion yuan.
Комментарии