Baosteel Group Xinjiang Bayi Iron and Steel Co. Ltd. was founded
in Urumqi, capital city of northwest China's Xinjiang Uygur Autonomous Region, on
Saturday.
Baosteel Group, China's largest steel maker, acquired Bayi Iron
and Steel Co. Ltd. in January by investing 300,000 yuan in the
corporation and becoming its controlling share holder.
"The restructuring is in line with the country's policy of
encouraging consolidation in the steel sector. It is of great
significance not just for China's iron and steel industry but also
for central and eastern Asia," said Li Rongrong, director of the
State-owned Assets Supervision and Administration Commission of the
State Council.
Baosteel said it would inject technology and management
expertise into Bayi Steel to accelerate its development.
Bayi Steel is now the largest steel maker in Xinjiang. It is
expected to increase its production capacity to 6 million tons by
2010.
(Xinhua News Agency April 29, 2007)