Steel Aircraft Carrier Baowu Sets Sailfor a Long Journey
On December 1, 2016, Baosteel Group Corporation and Wuhan Iron and Steel (Group) Corporation merged and were restructured into China Baowu Steel Group Corporation Limited. The establishment of Baowu Group was a milestone for State-Owned Assets Supervision and Administration Commission of the State Council.It showcased comprehensive implementation of ideas promoted at the 18th CPC National Congress and the Third, Fourth and Fifth Plenary Sessions of 18th CPC Central Committee. It was a major step towards promoting M&As, sound development of China’s steel industry, and supply-side structural reform. It also created the opportunity to actively respond to global competition, and improve enterprise quality and efficiency.
Baosteel and Wuhan Iron and Steel (Group) Corporation’s merger has far-reaching implications in the context of supply-side reforms. From the perspective of corporate social responsibility, Baowu Group will first assume the leader’s role in steel industry’s development and technological innovation. As everyone knows, China’s steel industry has reached a painful stage where it is “cutting overcapacity.” In fact, apart from massive overcapacity, the industry also suffers from many other issues, such as low concentration of plants, irrational product structure, illogical locations, and unevenenvironmental management. This situation has come to the fore, due to years of extensive development of the entire industry. With establishment of Baowu Group, we intend to seek solutions to these issues, and play a leading role in cutting overcapacity, restructuring, transforming and upgrading, adopting energy-saving measures, and ensuring environmental protection and green development. We aim to be “a leader in the global steel industry and a world-class corporation.”
Baowu Group’s second mission is to be a pilot state-owned corporation focusing on capital investment. In accordance with CPC Central Committee and State Council’s major decisions on enhancing state-owned enterprises’ reforms, and based on functional orientation of corporations with state-owned capital investment, Baowu Group needs to transform itself. It must change from an operational administrator to a capital administrator. It must prioritize developing multiple industries, including new materials, modern trade and logistics, industrial services, urban services and finance, while unrelentingly reinforce, improve and expand its main steel production business. The company will also enhance reform of three institutional mechanisms, and focus on specialization, have a professional management system, and streamline redundant administrative levels to enhance the company’s fitness, quality and efficiency, to become a world-class technological innovation, industrial investment and capital management platform in the steel industry.
As the steel industry’s flagship enterprise, Baowu has set sail. Despite the heavy burden on my shoulders, I’m fully confident in the future of our enterprise. My confidence stems from the fruitful decisions taken by the central government, and the interest and support from all segments ofsociety, as well as the powerful alliance between Baosteel and Wuhan Iron and Steel (Group) Corporation. After the merger, Baowu will have the world’s largest capacity for electrical steel production and third largest capacity for auto sheet production. The collaboration will significantly benefit a range of fields, including material procurement, technological R&D, division of production lines, and product sales. I’m also confident in our teams and our combined cultures. Baosteel and Wuhan Iron and Steel (Group) Corporation have both witnessed and contributed to China’s industrial modernization. Our employees have a strong sense of historical mission and pride, as well as conviction to strive for the sustainable development of China’s steel industry. Thus, they are innately in favor of Baowu Group’s merger and this reboot, along with steady integration, incorporation and unification.
As a new age steel giant, Baowu Group dreams to build China into a great iron and steel power. To make this a reality, Baowu Group must constantly remind itself of its glorious mission, and we must stay true to the mission. Together, with stronger faith, higher morale, and more enthusiasm, we will draw a new road map, start new ventures, and create greater success!
Chairman of China BaoWu Steel Group Corporation Limited: