Hebei: non-steel business takes more than 15%

Hebei province, the largest steel producer in China, motivates the development of non-steel business of the steel makers while slashing steel-making capacity. According to statistics from Hebei Province Metallurgical Association, non-steel business has reached more than 15% of the steel makers in the province.

With the sharpening competition and diluted profits of steel business, accelerating the expansion in upstream and downstream is the way to go besides optimizing the main business. Hebei will have to cut 60 million tonnes of overcapacity to get rid of air pollution by 2017, which is a tough problem to the province.

HBIS Tanggang is recognized as a pioneer in expanding non-steel businesses. Thousands of employees from Tanggang left the headquarter and stepped into non-steel businesses every year since the second half of 2010, and the total number had reached 17,000 by now. According to the plan, 22,000 output 37,000 employees from Tanggang will enter the non-steel businesses by 2015.

Tanggang Equipment Remanufacturing Company was once a repairing workshop in Tanggang, which went independent in 2012. At the beginning of this year, the company signed a 6 million yuan contract with Siemens. The amount didn’t mean a lot for the Group, however, it indicated a success in transforming. Tanggang holds 24 non-steel enterprises now, which contribute profit of 230 million yuan, accounting for near 50 percent of the total.

The development of non-steel business in Hebei has to base on market, including the supply and demand, and the market should decider of the allocation of resources.

-Edited by www.mysteel.net