China Baowu Steel Group Corporation (China Baowu), established by consolidation and restructuring of former Baosteel Group Corporation and Wuhan Iron & Steel (Group) Corporation, was officially established on December 1, 2016. China Baowu is a State-owned capital investment company with a registered capital of 52.79 billion yuan ($8.28 billion), an asset scale of 739.5 billion yuan and production capacity of 70 million tons, ranking first in China and second in the world. In 2017, China Baowu achieved the best operating performance in China’s steel industry, generating operating revenue of 405 billion yuan and profit of 142.7 billion yuan, ranking 204th among Fortune Global 500 companies.
The mission of the group is to “drive the green and intelligent transformation and development of the steel industry eco-sphere as well as the common growth of all stakeholders”. China Baowu is committed to leading in steel production, green development, smart manufacturing, service transformation and profitability through reform and development. Its goal is to promote the coordinated development of new materials, modern trade logistics, industrial services, urban services, industrial finance and other related industries based on a green, premium and intelligent steel industry. With all these efforts, China Baowu will develop several pillar industries with 100 billion yuan of operating revenue and 10 billion yuan of profits as well as a batch of backbone entities with 10 billion yuan of operating revenue and 1 billion yuan of profits.
Steel & Iron Industry: Emerging as the world’s leading and China’s No 1 premium steel manufacturer, China Baowu is developing a strategic spatial layout corresponding to the Belt and Road Initiative and the Yangtze River Economic Belt Strategy with Baosteel as the center working with other steel-makers under its arm such as Bayi Iron & Steel, Shaoguan Iron & Steel, Echeng Iron & Steel, Baosteel Special Steel, Baosteel Stainless Steel, Ningbo Baoxin and Baosteel Desheng.
New Material Industry: Focusing on fields like large transportation, energy and new-type building materials, China Baowu is exploring and nurturing several cutting-edge approaches for new materials in line with the strategic vision to become a comprehensive material supplier and solution provider integrating R&D, manufacturing and processing services. As the group develops new pillar industries the new material industry will evolve into the second largest manufacturing sector in China Baowu.
Modern Trade Logistics: Serving circulation of raw materials and fuel for the metallurgical industry, including steel and other materials, and products and related bulk commodities, China Baowu is building an open Internet-based B2B platform and service-oriented production system to actively promote the restructuring of the industrial order.
Industrial Services: China Baowu starts from serving the whole group and industry by leveraging the group’s technology strength and brand advantages to provide a full life cycle and efficient system solutions as well as corresponding engineering services to entities and society.
Urban Services: China Baowu moderately increases urban areas by revitalizing built-up land for real estate.
Industrial Finance: China Baowu is forging it into a critical pillar industry across the group by developing a professional, market-oriented and platform-based financial service system that provides comprehensive financial services such as supply chain finance, industrial funding, asset management and social wealth management for metallurgical and related industries.