Shougang’s Yili Iron & Steel’s 2011 Total Profit Doubled YoY

Xinjiang Yili Iron and Steel Co., Ltd. (hereinafter referred to as “Shougang Yigang”) plans to achieve a total profit of 220 million yuan in 2011, an increase of 76% over the same period of last year, and strives to double that of 2010 to reach 250 million yuan.

The author learned from Shougang Group on May 8 that the company’s Xinjiang Ili Steel Co., Ltd. (hereinafter referred to as “Shougang Yigang”) plans to achieve a total profit of 220 million yuan in 2011, an increase of 76% over the same period of last year, and strives to be better than 2010. Doubled to 250 million yuan.

Shougang Yigang's steel production in 2011 is expected to reach 450,000 tons, an increase of 170,000 tons, an increase of 61%; iron powder will strive to reach 1 million tons, an increase of 600,000 tons, an increase of 1.5 times; self-produced coke production and strive to reach 400,000 Tons, an increase of 200,000 tons year-on-year, doubled.

Shougang Yigang is the latest investment project of Shougang Group in response to the National Western Development Call. The company is located in Xinyuan County, deep in the Ili valley of Xinjiang, with a registered capital of RMB 1 billion. Construction began in July 2006.

According to Wang Jinbo, general manager of Shougang Yigang, in the first quarter of this year, the output of iron, steel, and steel of Shougang Yigang reached 87,000 tons, 89,000 tons and 85,000 tons, respectively, an increase of 60.74%, 111%, and 60% year-on-year respectively; The production of fine iron powder was 165,000 tons, an increase of 100,000 tons year-on-year, an increase of 154%. Based on the increase in physical output, the profit before tax was 24.67 million yuan, an increase of 15.05 million yuan over the same period of last year, an increase of 156%.

In recent years, while building new steel projects in Xinjiang, Shougang has also deployed a number of iron and steel projects such as Donggang’s Tonggang and Guizhou’s Water Steel in the country at the same time as the acquisition of new steel projects. The company has also demonstrated synergies in succession. Tonggang, which had suffered losses, plans to make a profit of 600,000 yuan in the first half of this year. In 2010, Shuigang has achieved operating income of 12.6 billion yuan and a profit of 85 million yuan.