Shandong Steel profited nearly 1bln yuan in first 9 months

November 3 MetalBiz--With the integration of internal business begin to exert effect, Shandong Iron and Steel Group Co., Ltd. (Shandong Steel) is gradually getting out of losses.

Recently CBN reporters learnt from Shandong Steel, up to September 2009, the operating income of Shandong Steel totaled 64.6bln yuan, and the accumulative profit was 987mln yuan.

In H1, Shandong Steel made losses of 1.285bln yuan accumulatively, while Rizhao Steel was profitable in the same period, which aroused the question from public opinion on Shandong Steel' s reorganization of Rizhao.

Under the pressure, Shandong Steel must turn losses into gains as soon as possible to prove itself, so it held a mobilization meeting, proposing targets such as achieving1.5bln yuan of total profit in the whole year and improving the core competiveness overall.

An insider of Shandong Steel told CBN reporters, business integration in the Group has become an important driving force to out of red.

The aforesaid insider said that the iron ore imposes greatest and most sensitive impact on the products cost, so Shandong Steel is carrying out the unified procurement of the bulk raw fuel to increase right for speaking, form the new decision-making mechanism, stabilize supply channels and purchasing price as well as realize lower procurement cost.

Shandong Steel is actively promoting funds centralized management to improve the capital efficiency and reduce the cost. Meanwhile, it strengthened the technological resources sharing within the Group to avoid the duplication of research and development investment.