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Baosteel sees e-commerce platform as new growth driver

By Wang Ying in Shanghai | chinadaily.com.cn | Updated: 2013-05-02 16:23

Baoshan Iron and Steel Co Ltd (Baosteel), the nation's largest listed steel maker, will launch an e-commerce platform in May as part of its efforts to diversify its business structure amid a sluggish market.

The platform, Shanghai Steel Trade Center, is co-founded by Baosteel and a company under the Baoshan district government. It's designed to provide an all-round service, including steel trades, settlements, storage and logistics to steel enterprises, traders and downstream clients, sources said.

"The Shanghai Steel Trade Center is expected to start operation in May, which will contribute between 20 percent and 30 percent of its profits to Baosteel," Ma Guoqiang, general manager of Baosteel was quoted as saying by the National Business Daily on Thursday.

Baosteel will hold a 90 percent stake in the steel trade center.

Major listed steel makers posted worse-than-expected earnings in the first quarter due to surpluses, but Baosteel remained upbeat with its net profit surging 33.3 percent to 1.6 billion yuan ($259.8 million).

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