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Baosteel: Luojing factory suspends production

Updated: 2012-09-27 15:34
By Wang Ying in Shanghai ( chinadaily.com.cn)

Baoshan Iron and Steel Co Ltd, the nation's largest listed steelmaker, said its Luojing factory has suspended production partly due to lackluster demand.

"After taking into account a number of factors, such as the industrial restructuring of Baoshan district, the sluggish demand in the downstream thick steel plate market, and the lower competitiveness of Luojing-made products in the Shanghai market, Baosteel has decided to stop production in the Luojing factory," Baosteel said in a notice filed with the Shanghai Stock Exchange on Thursday.

The company's board of directors will now discuss the future of the plant, the notice said.

Baosteel bought the Luojing factory from its parent Baosteel Group for more than 14 billion yuan ($2.20 billion) in 2008. The factory has an annual capacity of 3 million tons of steel products.

Separately, the China Securities Journal reported that Baosteel has launched a tender for a relocation project for the Luojing factory, and that it's likely that the plant steel assets will be relocated to Xinjiang Bayi Iron & Steel, a subsidiary of the Baosteel Group.

wangying@chinadaily.com.cn

 
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