Capital Iron and Steel Company Aims to Be Hi-Tech Leader

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Last updated at: (Beijing Time) Sunday, April 28, 2002

Capital Iron and Steel Company Aims to Be Hi-Tech Leader

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Black smoke and earsplitting noise are typical features of an iron and steel complex. But you may find neither of these in Shougang Corporation, formerly known as the Capital Iron And Steel Company, one of the largest steel giants in China.

Moreover, company leaders are always trying to divert visitors' attention from iron and steel, though it has been turning out metallurgical products for the past eight decades.

Instead, they are more likely to show off their new wares -- computer chips, robots and other hi-tech products.

"Go and see our chip production line. It's where the company's future lies," said Zhu Jimin, president of the company.

Believe it or not, Shougang, which is the largest enterprise in the Chinese capital of Beijing, is now a leading manufacturer of computer chips in the country.

Environmental protection tops the company's agenda as well. Flowers blossoming everywhere in the factory grounds and wild ducks sporting in the cooling ponds prove it. In 2001 alone, the company invested 320 million yuan (38.55 million U.S. dollars) in its environmental programs.

Company leaders are ambitious about their hi-tech programs and their strategic goal is to be a leader in this field. "By 2010, Shougang is expected to become a real hi-tech industrial group, with hi-tech products contributing more than 50 percent of its sales," said Luo Bingsheng, chairman of the company.

In fact, the company has reached its goal ahead of the time-table as its iron and steel departments have accounted for less than 50 percent of total sales for the past two years.

This year, the company's output of iron and steel will drop further due to market changes and implementation of its hi-tech strategy, according to Zhu.

The yearly output of iron and steel is expected to be downsized to 6 million tons, from last year's 8 million tons, he disclosed. As a result, hi-tech products and real estate development are contributing larger shares to sales.

The country's eminent entry into the World Trade Organization (WTO) has brought the company to a more competitive world market, but "the opening of the market is a two-way solution for all," said Luo.

While Shougang would face still greater challenges and pressure from international companies in the domestic market, it could also find more business opportunities in the world market, Luo noted.

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