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China Baowu Steel Group Corp., Ltd., commonly known as Baowu, is a state-owned iron and steel company headquartered in the Baosteel Tower in Pudong, Shanghai, China." Contact Us." Baosteel. Retrieved on November 10, 2012. "ADD:Baosteel Tower, Pu Dian Road 370, Pudong New District, Shanghai, 200122, P.R. China Postal Code:200122" - Chinese: "上海市浦东新区浦电路370号宝钢大厦" The company was formed by Baosteel Group absorbing its smaller state-owned peer, Wuhan Iron and Steel Corporation in 2016. It is the world's largest steel producer.
In 2015, Baowu was the second largest steel producer in the world measured by crude steel output, with an annual output of around 35 million tons (China's total steel production in 2015 was 803.8 million tons), and employed 130,401 employees as of the end of 2012, had annual revenues of around $21.5 billion, and produces a mix of products.Sirkin, Harold L.; James W. Hemerling; and Arindam K. Bhattacharya (2008-06-11). GLOBALITY: Competing with Everyone from Everywhere for Everything. New York: Business Plus, 304. . In 2019, the company closed the gap with ArcelorMittal reaching 95.47 million tons of steel, and hitting $78 billion in revenues, with 195,434 employees.
According to World Steel Association (Chinese companies data were provided by China Iron and Steel Association), the corporation was ranked the 5th in 2015 the world ranking by production volume (2nd in China for 34.938 million metric tons). A plan to merge with Wuhan Iron and Steel Corporation was announced on 21–22 September 2016, which would make the combined production volume the second highest in the world (34.938 million + 25.776 million), after ArcelorMittal (97.136 million in 2015), surpassing Hesteel Group (47.745 million in 2015). Since Baosteel Group and Wuhan Iron and Steel Corporation also announced targets of cutting 3.95 and 4.42 million metric tons production capacity respectively in June and July 2016, and a further cut for Baosteel Group of 2.10 million while a 3.15 million cut was already planned the final ranking may still significantly change.
The IPO of the subsidiary of Baosteel Group on the Shanghai Stock Exchange in 2000 was the largest in China up to that time, raising CNY 7.7 billion despite being limited to domestic investors only.
Initially, the firm limited its exports to just 10% of steel production, hoping to fulfill domestic demand. Baoshan Iron and Steel served the light industry base around Shanghai.
In the 1980s, Baoshan Iron and Steel supplanted Ansteel Group as China's largest steel producer.
Baoshan Iron and Steel also benefitted from the Chinese economic expansion which consumed all the steel available. However, with the continuing liberalization of the Chinese economy, Baoshan found itself in competition with new rivals, both foreign and domestic. By the late 1990s, the company removed its cap on steel exports; it scored notable success in South Korea. Although hurt by the Asian financial crisis, Baoshan pushed through with a merger of other money losing state owned enterprises, though it had managed to remain profitable itself.
In 1997, a subsidiary of Shanghai Metallurgical Holding, the former Shanghai No.3 Iron and Steel Plant, Shanghai Pudong Iron and Steel, formed a joint venture with ThyssenKrupp of Germany, as Shanghai Krupp Stainless. Company Profile Shanghai Krupp Stainless It followed the parent company to become a subsidiary of Baosteel Group in 1998.
In 2000, a subsidiary Baoshan Iron & Steel Co., Ltd. was formed to list a portion of the group on the Shanghai Stock Exchange, while Shanghai No.1st, 2, 3 and 5 Iron and Steel Plants of the group were remaining unlisted. In 2004, the listed subsidiary acquired Meishan Iron and Steel from Baosteel Group (via Shanghai Meishan Group).
Baosteel took over the benchmark negotiations in the global iron ore market in 2006. At that time, the global iron ore market had been subject to a benchmark pricing regime set by the three largest producers (Rio Tinto, Vale S.A., and BHP) and the largest importer (which had been Japanese importers prior to 2006). In 2009, it was replaced as the lead negotiator by China Iron and Steel Association. The benchmark pricing system ended in 2010.
In 2007 Baosteel Group acquired the majority stake of Xinjiang Ba Yi Iron and Steel Group, which was the parent company of Ba Yi Iron and Steel Company.
In 2008 Baosteel Group expended in Southern China, which planned to build a new facility in Zhanjiang, Guangdong, which formally started by its subsidiary Baoshan Iron & Steel in 2012, by acquiring 71.8032% stake of Zhanjiang Iron and Steel for CNY4.976 billion from State-owned Assets Supervision and Administration Commission of Guangzhou City.
In 2011, Baosteel Group acquired 51% stake of Guangdong Shaoguan Iron and Steel Group from SASAC of Guangdong Government. In April 2012, Shaoguan Iron and Steel Co, Ltd. was established.
Boasteel owns the 85% of held resources company Aquila Resources Pty Ltd, through Baosteel Resources.
Boasteel developed a sales and distribution network in China and foreign countries. Boasteel overseas subsidiaries controls key minerals resources for steel production, such as the Majishan ore terminal in the port of Zhoushan. Baosteel also invested in steel-related industries such as Baoxin Software and Baosteel Chemical.
In early 2016, Baosteel Group was accused by US Steel Corp. of stealing commercial secrets. Baosteel rejected these allegations, stating that "In particular, the charges claiming that Baosteel stole commercial secrets from U.S. Steel is rootless speculation and subjective assumption, and could even be described as an absurd statement". The United States International Trade Commission launched a probe into these allegations in May 2016. Next to Baosteel, Hebei Iron and Steel Group, Wuhan Iron and Steel Co., Ltd., Maanshan Iron and Steel Company Limited, Anshan Iron and Steel Group and Jiangsu Shagang Group are also under investigation. In February 2017, US Steel dropped the claim of trade secret theft because of a lack of evidence, and in October 2017, the United States International Trade Commission dismissed the anti-circumvention allegation. In March 2018, it additionally dismissed the antitrust claims, again because of a lack of evidence, and ended the investigation.
In 2019, China Baowu Steel Group acquired 51% stake of Masteel Group from the SASAC of Anhui Provincial People's Government for free. The acquisition also included the indirect controlling stake of the list company Maanshan Iron and Steel Company Limited.
By 2020 the company had become the largest steel manufacturer in the world by volume. "China's Baowu unseats ArcelorMittal as world's top steelmaker," Nikkei Asia, retrieved 14 July 2021
In 2022, Baowu acquired fellow state-owned enterprise Sinosteel.
Baosteel Group, as at 31 December 2015, still owned 15.11% stake in New China Life Insurance, a listed company in both Hong Kong and Shanghai Stock Exchange, as well as China Bohai Bank for 11.67% stake, China Pacific Insurance for 14.17% stake.
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