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Baosteel europe case study

Abstract: Shanghai Baosteel Group Corporation or Baosteel was set up by the Chinese government near the Shanghai port in , when Deng Xiaoping initiated the transformation of the Chinese economy from a rigid centrally planned economy to a market-oriented economy. Besides iron and steel, the group also forayed into trade, finance, information, engineering technology, transport, chemicals, real estate and services. By , Baosteel had become China's largest steel manufacturer. With China's accession to the World Trade Organisation WTO in and the subsequent opening up of the Chinese steel industry to foreign players, Baosteel had to face tough competition in the domestic as well as foreign markets. Despite competition, by , Baosteel increased its production capacity to 20 million tons with total employee strength of ,
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Abstract: Shanghai Baosteel was China's largest steel company. In the year , the company planned to increase its steel production capacity from the existing 30 million tons to 80 million tons by This expansion strategy was adapted to gain greater control over the Chinese, as well as the global steel industry and to increase bargaining power with the raw material suppliers. To execute this plan, the company resorted to inorganic expansion strategies such as mergers, acquisitions and strategic co-operation, with both domestic as well as foreign steel companies.
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Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy. Since the global financial crisis in , China has seen explosive growth in overseas investment. The Ministry of Commerce forecasts that the size of China's outbound direct investment will exceed that of foreign capital utilization for the first time in
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