Steel Giant Establishes Distribution JV in Shanghai

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Last updated at: (Beijing Time) Tuesday, December 03, 2002

Steel Giant Establishes Distribution JV in Shanghai

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Already China's biggest steel producer, Shanghai Baosteel Group Corporation (SBGC) also aims to secure the role as China's leading steel distributor, with the establishment of a joint venture Monday in Shanghai's Pudong District.

Set up with Japan's Mitsui and Co., Ltd, a prominent world steel distributor, SBGC holds a 65 percent stake in the steel distribution joint venture, which has a registered capital of nearly 30 million US dollars.

The new venture, called Shanghai Bao-Mit, will concentrate on the processing, sales, distribution and storage of high-grade cold-rolled sheets, silicon steel and surface-treated sheets, and will mainly target automotive plants and manufacturers of household electric appliances.

He Wenbo, deputy general manager of SBGC, said modern steel distribution enjoys vast market potential in China.

"The efficiency in this sector is not high at this moment in China," said He.

According to He, Shanghai Bao-Mit would have 25 to 30 regional steel processing and distribution centers across China by 2006, each with a processing capacity of around 100,000 tons per year.

Specialists said under the company's distribution system, customers would get their steel supplies in the required specifications and in the shortest time.

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