The Shanghai Baogang Group Company, China's most modern steel producer, netted profits of 1.5billion yuan (180 million US dollars) in 1999, up some 50 percent from the previous year.

Recent statistics show the sales volume of the company rose by 1.9 percent to reach 25.24 billion yuan (3.04 billion US dollars) last year.

Company Chairman Xu Daquan attributed the growth to the economic recovery in Asia and technological upgrading of the company.

The company group exported 1.56 million tons of iron and steel last year, the bulk of which were sold to neighboring Asian countries.

About 24 percent of its products are now technology-intensive and are widely used for the manufacture of motor vehicles, household appliances, containers, and various other industrial products.

Formerly called the Baoshan Iron and Steel Complex, the Baogang Group adopted its present name after merging with the Shanghai Metallurgical Company and the Meishan Steel Company.

The merger was aimed at helping China, one of the largest iron and steel producers in the world, become a more powerful manufacturer.

The company has set a target goal of 1.72 billion yuan (207 million US dollars) in profits for this year.