State-owned Sinosteel, a leading raw material and service provider to both domestic and foreign steel manufacturers, said it hopes to increase its annual sales revenue to 70 billion yuan (US$8.9 billion) in 2007.
The expectation is based on the fast growth of sales income in the last few years, which saw 13 billion yuan (US$1.6 billion) in 2003, 20 billion yuan (US$2.5 billion) in 2004, and 30 billion yuan (US$3.8 billion) in 2005. The amount is expected to hit 50 billion yuan (US$6.3 billion) this year, Huang Tianwen, president of Sinosteel, said at a press conference.
"Sinosteel enjoys special advantages in the market because it is the only enterprise so far in China which has a complete industrial chain capable of providing all services for every process of the steel industry," Huang said.
To realize the plan, the corporation will further reinforce its core business involving resources development, trade and logistics, and engineering, science and technology, he said.
During the Beijing Summit of the Forum on China-Africa Co-operation held early this month, Sinosteel reached an agreement with South Africa on a chrome ore mining project in the country.
The company now operates a joint venture with South Africa Limpopo Province Development Corporation, ASA Metals, which includes a mine with an annual output of 400,000 tons of chrome ore and a smelting plant producing 120,000 tons of ferrochrome a year.
Apart from its iron ore project in East China's Shandong Province, Sinosteel also holds a 40 per cent stake in the Australia Channar Iron Ore Mine, where ore reserves amount to 200 million tons. It is the biggest single industrial project between China and Australia, Huang said.
Long-term co-operative agreements have been signed between Sinosteel and China Railway Engineering Corporation, China Harbour Engineering (Group) Corporation, China Development Bank and the Export and Import Bank of China to guarantee the normal operation and further development of the corporation's resources development sector.
"The strategic partnership has helped the company sharpen its competitive edge and increase the driving force of its core business," he said.