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Old 12-31-2011, 03:02 AM   #1
shanwei8550
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Default China's steelmakers diversify amid profits squeeze

China's steelmakers diversify amid profits squeeze (Xinhua)
Updated: 2011-05-05 10:38 2011-05-05 10:38:13.0China's steelmakers diversify amid profits squeezesteelmakers ,profit margins ,diversifying,iron,ibeats headphones,wine production,robot manufacturing,real estate11022002Companies2@webnews/enpproperty-->
WUHAN- China's steelmakers -- battling to block their profit margins from beyond decreasing -- are diversifying into sectors unrelated to steel including wine production,robot manufacturing,and real estate.
While iron production among China has annexed over the years, steelmakers' profits have slumped. Last anniversary the average profit margin of the country's steelmakers was two.91 percentage,far below that of the industrial sector which was six percentage
"There are two reasons as the inexpensive profits in iron industry. On an hand,モンクレール レディース, overcapacity is a colossal problem,on the other,costs of iron ores have been on the climb along with iron production prices said Deng Qilin,abercrombie,common manager of Wuhan Iron and Steel (Group) Corporation (WISCO), a leading Chinese steel firm
Last December, WISCO displayed a absolute of 38 revise kinds of wine and 29 kinds of olive fuel at the 19th China International Food Procurement Fair (CIFPF) amid Wuhan, capital of king China's Hubei province.
WISCO only entered the edible mall last yearly only it namely no apprentice apt investing outdoor of the iron sector. The company's non-steel business profit of an.8 billion yuan ($277 million) among 2010 accounted for more than a half of company's total profits.
Even nevertheless the returns aboard the company's investments outside its essence happening are high the total invested namely still relatively small.
"We direction to lift the chapter of our non-steel affair apt 30 percentage by the annihilate of China's 12th Five-Year Plan Period (2011-2015),abercrombie pas cher," said Gao Bo,agent adviser of the planning plus evolution division of WISCO.
WISCO is not the only company diversifying into districts unrelated to iron production.
"It is impossible for those iron giants apt acquaint money through raising production. Expanding into the non-steel affair namely a better choice said Yang Jianlong,agency chief of the industrial economy division with the Development Research Center of the State Council.

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Shanghai Baosteel Group Corporation (Baosteel), the largest listed iron company surrounded China,a&f,namely likewise eyeing diversifying further into other sectors.
The Shanghai-based iron maker named its evolution plan "One Plus Six," as the company intentions to keep iron production as its elite happening meantime questing apt expand into other sectors including resource evolution the extended processing based aboard coiled iron technological services,bottes pas cher, finance, engineering services plus the coal-based chemical industry.
Another steel giant, Shougang Group, gained half of its profit from sectors outdoor that of iron as early as a decade ago The company has investments within the electronics, mining, machinery,and automatic parts industries.
Moreover, the present income from Shougang Group's electronics industry and mechanical plus electronics commerce recently approached 13.one billion yuan,doubling that of five years ago.
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