China Daily (Canada) - - SHANGHAI -

the fall in China’s crude steel out­put be­tween 2014 and 2015

For years, steel man­u­fac­tur­ing has earned it­self a rep­u­ta­tion for be­ing an in­dus­try with high lev­els of re­source con­sump­tion, emis­sion and pol­lu­tion. As a re­sult, Baos­teel has for the past few years been striv­ing to trans­form it­self into an ur­ban steel maker that uses smart man­u­fac­tur­ing and an in­ter­net-based ecosys­tem to man­age its oper­a­tions in ar­eas such as lo­gis­tics, de­liv­ery and fi­nanc­ing in a more en­vi­ron­men­tally friendly man­ner.

The com­pany has also in­vested much ef­fort into the de­vel­op­ment of en­vi­ron­ment-re­lated tech­nol­ogy. For in­stance, Baos­teel is cur­rently ca­pa­ble of turn­ing 8,000 tons of used paint buck­ets into high-qual­ity raw ma­te­ri­als for steel man­u­fac­tur­ing. Baos­teel has also iden­ti­fied how the e-com­merce phe­nom­e­non in China has re­sulted in vast amounts of pack­ag­ing ma­te­ri­als be­ing dis­carded af­ter con­sumers re­ceive their on­line shop­ping or­ders, and is cur­rently re­search­ing how th­ese ma­te­ri­als can be turned into blast fur­nace fuel.

In Septem­ber, 2015, Baos­teel com­menced oper­a­tions of a green steel project in Zhan­jiang, Guang­dong province, mark­ing a mile­stone for the Shang­haibased steel­maker and China’s steel in­dus­try.

“With more than 6 bil­lion yuan ($903 mil­lion) in­vest­ment go­ing into this en­ergy-sav­ing project, the Zhan­jiang project will be­come a green steel man­u­fac­tur­ing base with the least emis­sions and high­est en­ergy and re­sources ef­fi­ciency,” said Guo Bin, deputy gen­eral man­ager of Baos­teel Group.

Dur­ing the re­lease of the eighth edi­tion of the Baos­teel Group Corp So­cial Re­spon­si­bil­ity re­port, Chen said the group’s ca­pac­ity re­duc­tion will also aid Shanghai’s trans­for­ma­tion into an in­ter­na­tional eco­nomic cen­ter, a fi­nan­cial cen­ter, a trade cen­ter and a ship­ping cen­ter by 2020.

Last year, China’s steel in­dus­try saw its first neg­a­tive growth in 34 years, with crude steel out­put fall­ing 2.3 per­cent from that of the pre­vi­ous year, ac­cord­ing to sta­tis­tics from Shanghai Gan­glian Ecom­merce Hold­ings Co Ltd.

Data from the China Iron and Steel As­so­ci­a­tion also showed that ma­jor steel enterprises re­ported a to­tal loss of 64.5 bil­lion yuan in 2015, a sharp fall from the 22.6 bil­lion yuan prof­its a year ago. In ad­di­tion, more than half of the steel mak­ers in the coun­try were in the red, and their monthly losses from Au­gust to De­cem­ber 2015 hit 10 bil­lion yuan.

“Baos­teel is not im­mune to the in­dus­trial cool down and the past year has been the most chal­leng­ing one in Baos­teel’s 30 year his­tory,” said Chen.

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