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Shougang Not Closing Down; Will Become High Tech Firm
In response to rumors that Shougang Group would go under, Shougang Group CEO Luo Bingsheng told reporters that Shougang Group would not be closing down Thursday afternoon. Shougang Group is a one of China's major iron and steel producers.
Mr. Luo said, "Shougang Group's market brand is a high tech firm. The name 'Shougang ' won't change in the future but its content will." He also revealed that the Shougang Group enterprises in Beijing, Tianjin and Hebei are currently planning to form a northern China iron and steel company merger in order to optimize the production structure. In the process of restructuring the northern China iron and steel operations, a few branches and facilities may be moved.
Shougang has already mapped out three major development strategies: develop Shougang Group's high tech companies, real estate projects and service industry projects; use high tech to revamp Shougang's traditional iron and steel industry, machinery projects and architecture projects and develop Shougang Group's overseas business. By 2010, Shougang Group's high tech industry's sales revenues is expected to reach 50 billion yuan and account for more than 50% of Shougang Group's total sales revenues. By then, Shougang Group should be primarily a high tech company.
The first step towards transforming Shouganginto a high tech firm is to renovate the Shougang-NEC joint venture. By the end of this year, the Shougang-NEC microchip production capability should be increased from 8,000 chips per month to 15,000 chips per month. Shougangand NEC will build the largest microchip production base in northern China. This year, Shougangand Tsinghua University will work together to develop a telecom and pharmaceutical company as well as high capacity storage CD-ROMs with another local enterprise. Shougang Groupis currently working on at least eleven high tech projects.
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