Mon, May 15, 2000 - Page 17 News List

China Steel unveils plans for massive restructuring

STAFF WRITER

China Steel (中鋼) announced plans yesterday to diversify into a number of industries, including electronics, energy and services.

The company will reposition itself as a "supplier of industrial materials, brain-power resources and boosting of living standards. Since its establishment, the company has evolved from "manufacturer of steel materials" to "supplier of steel materials" and "supplier of industrial materials."

The company decided at a business meeting yesterday to expand and evolve into a conglomerate.

The expansion plan also includes building a second core business within five years.

The company also plans backward and forward integration in its own steel industry, merging with other steel-makers and suppliers of raw materials, taking control of sales channels, and improving customer services. The company also plans to find a second production site and expand overseas markets through strategic alliances.

For expanding into other industries, the company plans to focus on electronic components, precision equipment materials, and development of new energy resources, the company said.

The company also cited software, e-commerce, biochemical industries, as well as recreation and security services as important industries in its quest for expansion.

The company plans to raise the proportion of non-steel revenues from the current 23 percent to 30 percent within five years.

Last week, a group held under the company won priority negotiating rights to build a light-rail system in Kaohsiung.

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