Despite the global economic slump amid the viral outbreak, Chinese steel producer China Baowu Steel Group has decided to accelerate its efforts to expand its business worldwide. After achieving its goal of becoming the world's largest crude steel producer last year, the company now has its sights on becoming the global leader in the industry.
China Baowu Group chairman, Chen Derong, told reporters this week that the company aims to further internationalize its business this year, focusing mainly on the North American and European markets. Chen claimed that their previous efforts have so far paid off as they had overtaken ArcelorMittal to become the world's largest crude steel producer.
Last year, the company managed to produce more than 95.22 million metric tons of crude steel, a much higher volume when compared to the 89.9 million metric tons of crude steel produced by ArcelorMittal. Chen claimed that the steel the company produced last year accounted for half of the world's total. He added that it will only be a matter of time before China Baowu will be the world's biggest steel producer by volume.
In terms of total earnings over the same period, China Baowu Steel Group reported total revenues of $79.48 billion and profits of $4.88 billion. This was a $97.62 million higher than the company's profits from the previous year. In contrast, Luxembourg-based ArcelorMittal had reported a negative profit of $1.9 billion last year on revenues of around $70.6 billion.
China Baowu was originally established in 2016 as a result of the the merger between the Wuhan Iron & Steel Group and Shanghai-based Baosteel Group. During its formation, the company had a production capacity of 70 million tons, becoming the world's second-largest the producer behind ArcelorMittal.
Since its establishment, the company has been expanding rapidly through various mergers and acquisitions. Last year, the company acquired Maanshan Iron and Steel Co Ltd, boosting its production capacity to more than 90 million tons.
In December last year, Four Rivers Investment Management had signed a letter of intent with Baowu to transfer its interest in Chongqing Iron & Steel. Negotiations are still reportedly ongoing but the deal is expected to be closed by June of this year.
Baowu claims that it still plans to continue with its expansion through further acquisitions at home and abroad. The company claims that after it becomes the world's largest steelmaker, it will be shifting its goals to become a leader in steel manufacturing technology.
