Posted on 03 Dec 2008
Baosteel to increase heavy plate output
Baoshan Iron & Steel Co. (Baosteel), China’s biggest steelmaker, is planning to raise its plate output capacity by 29 percent in order to meet shipbuilders demand in Asia.
Heavy plate business has become Baosteel's most profitable product to sustain sales in such a serious economic slowdown.
The company will sell 200,000 tons of plates next year to the world’s biggest shipbuilder Hyundai Heavy Industries Co. There will be 15 percent more vessels to be delivered next year globally and shipyards in South Korea expect exports to jump 23 percent next year to a record.
Hyundai Heavy may raise orders to 300,000 tons and China supplied about 25 percent of the 4 million tons of plates Hyundai Steel. It is very obvious to see that heavy plates, used in ships and oil pipelines, are the most profitable sector for the company.
