Baoshan Iron & Steel Co., Ltd.

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Baoshan Iron & Steel Co., Ltd.
Baosteel
Company type public
SSE: 600019
ISIN CNE0000015R4
IndustryMetallurgy
Founded3 February 2000 (2000-02-03) [1]
Founder Baosteel Group
Headquarters
Shanghai
,
China
ProductsSteel
RevenueDecrease2.svg CN¥292 billion (2019)
Decrease2.svg CN¥012 billion (2019)
Total assets Increase2.svg CN¥340 billion (2019)
Total equity Increase2.svg CN¥178 billion (2019)
Owner
Baowu (61.93% directly and indirectly)
Number of employees
52,323 [2] :83 (2019)
Subsidiaries
Wuhan Iron and Steel Co. Ltd. (100%)
Meishan Iron & Steel Co., Ltd. (77.0%)
Zhanjiang Iron & Steel Co., Ltd.(90.0%)
Baosight Software (50.8%)
Chinese name
Simplified Chinese 宝山钢铁股份有限公司
Traditional Chinese 寶山鋼鐵股份有限公司
Literal meaningBaoshan Steel and Iron Company Limited by Shares
Transcriptions
Standard Mandarin
Hanyu Pinyin Bǎoshān gāngtiě gǔfèn yǒuxiàn gōngsī

Baoshan Iron & Steel owned 4 major steel plants that located in Shanghai, Nanjing (in Meishan Iron Mine), Zhanjiang and Wuhan. The latter three were incorporated as a limited companies. Baoshan Iron & Steel also owned another listed company Baosight Software (SSE:600845) as well as other subsidiaries and joint ventures.

Baosight Software

Meishan Iron & Steel

In 2004, Baoshan Iron & Steel acquired Meishan Iron & Steel Co., Ltd. [11] Despite located in Nanjing, Jiangsu Province, the steel plant was founded by Shanghai municipal government and merged with Baosteel Group in 1998.[ citation needed ]

In 2019, it was announced that the steel plant of Meishan Iron & Steel, would relocate to Yancheng, Jiangsu Province in the 2020s. [16]

Zhanjiang Iron & Steel

In October 2012, Baosteel acquired the controlling stake in Zhanjiang Iron & Steel Co., Ltd. from the State-owned Assets Supervision and Administration Commission (SASAC) of the Guangzhou Municipal People's Government. [17] After the capital increase as well as the withdrew of Guangzhou SASAC, the listed company owned 90% stake of Zhanjiang Iron & Steel. [18]

The first phase of the steel plant that owned by Zhanjiang Iron & Steel, is completed in 2016. [19]

Wuhan Iron & Steel

On 21–22 September 2016, a merger between Baosteel Group and Wuhan Iron and Steel Group (WISCO) was announced. Baoshan Iron & Steel would take over the listed counterpart from Wuhan Iron and Steel Group in an all-share deal, [20] while all the rights of Wuhan Iron and Steel Group would be transferred to Baosteel Group, as both corporations were supervised by the Central Government's SASAC.[ citation needed ]

Unlike Baosteel, WISCO has a longer history which could be traced back to 1955. It was once considered as the top 3 steel plants of China, along with Ansteel Group and Baotou Steel. [21] Before the merger, if counting both listed and unlisted portions of WISCO, it was the sixth largest steel company in China and 11th in the world as of 2015, according to World Steel Association and China Iron and Steel Association. [22]

Equity investments

In 2002, Baosteel invested CNY 8 billion in the third pipeline of the West–East Gas Pipeline, acquiring a 12.8% stake (the pipe was incorporated as a limited company called Chinese :中石油西北联合管道有限公司). In December 2015, a new company, PetroChina Pipelines (Chinese :中石油管道有限公司), was formed to manage all three of the west–east pipelines, and existing share capital of the three management companies were converted into the share capital of the new company, giving Baosteel an overall 3.25% stake. [23] [24]

Shareholders

Since foundation, Baosteel Group (now called China Baowu Steel Group after a merger) is the controlling shareholder of the listed company. [1] [2] In turn it is owned by the Chinese Central Government. However, the ownership ratio changed from time to time.[ citation needed ]

In mid-2016, Baosteel Group and China National Petroleum Corporation, both overseen by the State-owned Assets Supervision and Administration Commission, formed a cross ownership arrangement for their listed subsidiaries. [25] After the deal, Baosteel Group held a 0.34% stake in PetroChina, while China National Petroleum Corp. received a 4.86% stake in Baoshan Iron and Steel. [25]

In December 2019, Baowu transferred a further 2.19% stake of the listed company to Beijing local government-owned Shougang Group. [26] Immediately after the deal, Baowu's stake on the listed company decreased from 64.12% to 61.93%. [26]

Markets

Baoshan Iron & Steel Co., Ltd. is a constituent of the CSI 300 pan-exchanges index. [27] As of May 2020, it was also part of the subset, the CSI 100 Index. [28]

The listed company was a constituent of the SSE 50 Index, the blue chip index of the Shanghai exchange. The shares was removed from the index in 2013 and re-instated in 2017. [29] The company was removed from the index in December 2019. [30] As of May 2020, the company is still a constituent of SSE 180 Index.[ citation needed ]

The company is ranked 323rd in 2020 edition of Forbes Global 2000 . [31]

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