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Baosteel Sets up Subsidiary in NW China
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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)

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