Sinosteel appoints new president to drive growth

11:02, May 17, 2011      

Email | Print | Subscribe | Comments | Forum 

Sinosteel Group, China's largest iron ore trader, has announced the appointment of Jia Baojun as its president to replace the outgoing Huang Tianwen, according to the company's website on Monday.

The appointment was announced by the State-owned Assets Supervision and Administration Commission (SASAC), which is both a regulator of, and shareholder in China's largest State-owned companies, without offering any reason.

Prior to the appointment, Jia, 53, was the president of Sinosteel Corporation Limited, a Sinosteel subsidiary, from 2010. Before joining Sinosteel Group, he was the vice-president of Wuhan Iron &Steel Group, China's third largest steelmaker.

Jia's appointment has been seen as an SASAC attempt to drive Sinosteel's overseas investments, by banking on his wide international experience at Wuhan Steel, sources said.

Aiming to be self-sufficient in iron ore supplies within three to five years, Wuhan Steel has recently been actively investing in overseas assets.

"Jia's new appointment may help Sinosteel to be more aggressive in overseas acquisitions. Sinosteel's next target could be copper resources," said the source.

Fifty-six-year-old Huang Tianwen, who took the helm at Sinosteel in 2003, was removed by SASAC because of financial mismanagement, according to a source familiar with the matter.

The source said SASAC was considering Huang's removal six months ago, following an investigation by State auditors into unexplained losses at Sinosteel in August.

Huge financial losses were first discovered in October 2008, when State officials said Sinosteel lost 2.6 billion yuan ($399 million) in advanced payments for steel that it never received from the privately owned Shanxi Zhongyu Iron and Steel Co, according to reports in the Caixin Weekly.

Sinosteel and its subsidiaries had prepaid 4.2 billion yuan for steel and iron products that Shanxi Zhongyu was contracted to supply. However, these were never delivered.

The financial losses had also forced Sinosteel to shelve its planned IPO.

In an interview with China Daily in January 2010, Huang said Sinosteel submitted documents to gain regulatory approval for an IPO on the A-share market and expected to receive the green light by June 2010.

However, the proposed listing was suspended due to the losses.

Sources close to the IPO deal told China Daily that Sinosteel first chose the consulting and accounting firm PricewaterhouseCoopers to help with the listing exercise.

Soon after, the job was transferred to a local auditing firm because of significant problems in financial management.

Source: China Daily

 
 
     
 
BRICS Leaders Meeting 2011
 
Japan in aftershocks
 
     
 
 
 
  Weekly review  
 
May 12   No winners in U.S. hi-tech export controls
 
May 12   China should view livelihood issues from strategic perspective
May 11   Syria will not be another Libya
May 06   Beijing-Shanghai high-speed railway to launch 10-day trial run
May 14   The week in pictures
May 11   2000-year-old wine unearthed in Henan province
May 11   Scientist: China plans to build lunar research base
May 09   Apple employee, customer reach settlement after Beijing iPad brawl
May 12   Wenchuan Reconstruction: 'Chinese miracle' impresses world
May 12   No winners in U.S. hi-tech export controls
 
     
 
 

(Editor:石希)

  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
  • 3rd Anniversary Of Wenchuan Earthquake
  • Third China-U.S. Strategic and Economic Dialogue
Major headlines
Editor's Pick
  • WHO opens 64th World Health Assembly in Geneva
  • Gharrafa beat Lekhwiya at Emir Cup
  • Sacred mountain and lake in SW China's Tibet
  • HKCU confers honorary fellowship
  • 7th China Int'l Culture Industry Fair concludes in Shenzhen
  • Gharrafa beat Lekhwiya at Emir Cup
Hot Forum Dicussion