On Feb., 27, the listing ceremony of Baosteel Co., Ltd.'s merger on WISCO was held in Shanghai Stock Exchange. Chairman of Baoshan Iron & Steel Co., Ltd., Dai Zhihao, and President of Baoshan Iron & Steel Co., Ltd. Zou Jixin jointly sounded the listing gong, witnessing such important milestone of Baosteel Co., Ltd. The same day in early morning, the stock opened sharply higher

Since the proposal was announed, the well-known research institutes both from home and abroad have one after another issued their research reports, expressing their recognition on the significance and influence of the merger between Baosteel and WISCO, as well as their anticipations on the synergy effect in future. It is reported that since the merger proposal was released and its resumption of listing, Baosteel share has continuously gone high, rising by nearly 50%, which reflects the highly recognition by market and investors.

The industrial analysts think that the consolidation between Baosteel and WISCO is the important measures for the state-asset & state-owned enterprise reform under the current market environment. It is not only the key step for the healthy competition among the steel industry, but might also be able to substantially promote the steel industry to deepen the supply side reform.

Several market participants have put it that the new Baosteel Co., Ltd. Will carry out the comprehensive integration in sales, procurement, R & D, finance and information technology, including continuously optimizing & enhancing technology capability, rationally controling steel capacity and precisely deploying the market, etc.

As a matter of fact, state-owned enterprise reform, de-capacity concept, and the good anticipation on infrastructure in future marke, have made the capital market be optimistic to the development outlook of new listed company. The Everbright Securities believe that the new BaoWu will be not only bigger but also stronger. They are optimistic about the operation performance and competitiveness improvement of the new company.

World Steel Carrier

Public information shows that after consolidation, Baosteel Co., Ltd. Ranks the 3 in crude steel output among the global listed steel enterprises, ranks the 3 in output among global automotive sheet market and ranks the 1 in output among the global GO silicon steel market.

It is reported that after its resumption of listing, Baosteel will take become the most competitive steel enterprise in the world, and the listed company with the most investment value as its strategic target, adhere to One Body, Two Wings development strategy: the new development momentum, taking steel business as its Main Body, intensify the comprehensive competitiveness with cost reform, technology leadership, early engagement, intelligent manufacturing and city steel mill as five core capabilities, taking intelligent manufacturing & Ouyeel steel ecosystem platform service as Two Wings, to build the first class steel enterprise.

Meanwhile, Baosteel Co., Ltd. Will make the comprehensive deployment on 4 steel production bases. The steel plant mode will be implemented on Shanghai Baoshan, Nanjing Meishan, Zhanjiang Dongshan and Wuhan Qingshan steel bases，comprehensively integrating the national coastal strategic locations, systematically integrating the regional advantages of steel business from the multiple perspectives, rationally deploying the neighboring market, orderly docking national and global clients, radiating the 21 century Maritime Silk Road Economic Region. Through the deployment optimization on production bases, Baosteel Co., Ltd. Will implement intensive deployment on raw materials, finished product transportation & storage, so as to reduce cost and enhance efficiency.

The insiders tell that the merger of Baosteel on WISCO will substantially enhance the intertional competitiveness and influence of China's steel industry, further improve the recognition and acceptance of international community on technology level and production equipment of China's steel industry, provide key support to China's steel industry to paticipate in One Road, One Belt construction and international capacity cooperation, accelerate the Going Out step, so as to win voice for China's steel industry world widely.

Source:Baosteel News Centre

Baoshan Iron & Steel Co. Ltd. published this content on 27 February 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 07 March 2017 05:52:04 UTC.

Original documenthttp://bg.baosteel.com/en/contents/3671/104155.html

Public permalinkhttp://www.publicnow.com/view/9140A2B00E3530CE653573244244FADE3A4DCF58