![]() This will become more so as MMI disappears and most steel firms are transferred to the local government level. The technological advantage remains on the foreign side, but unfortunately it is not an industry where the gap is too large to bridge for a firm like Baosteel. It is said that for some high-end sophisticated technology, Baosteel lags behind Nippon Steel by 5 to 10 years ( 21st Century Economic Herald, 31 July 2003). Laser-tailor-welded blanks are used to lower the weight of automobiles and improve fuel efficiency. This is the average hours needed for a worker to produce one ton of steel, which are calculated by the data available in the 2002 annual report of Baosteel Co Ltd.Īs the name suggests, it is a joint venture between Shanghai Automotive Industry Corporation and Volkswagen. It is defined as gross profit (sales revenue minus the cost of goods sold) divided by net sales revenue. Yet to be fair, the government did not stand idly by when Baosteel was struggling to solve these thorny problems, for under the debt-equity swap programme beginning in 1999 it did not need to take on all the former bad debt in the two firms OECD, (). The response was fairly diplomatic but he emphasized that Baosteel could not be that successful without strong and dedicated government support over the last 20 years, therefore suggesting that such a kind of arranged merger was the cost they needed to pay, since government support and intervention are just two sides of one coin. In an interview with a top manager at Baosteel Group, the author wondered whether Baosteel would have grown faster and been much closer to its goal of becoming the global competitive steel giant if there had not been such a merger. See Steinfeld () for detailed case studies of Anshan Steel and Ma'anshan Steel, which suffered from uncoordinated exercises of control rights by the Ministry of Metallurgy, the provincial and municipal governments. Thus, despite large training programmes of Chinese engineers and technicians in Japan and West Germany, nearly 2000 Japanese and West Germans took part in the first phase (Etienne, : Chapter 3). It is widely believed that the equipment and technology used in the phase I construction (1978–1985) live up to the state-of-the-art level of the late 1970s (e.g. Only 4% of domestic steel consumption now lies in auto production, compared with 18% in Japan and 30% in the US. Nearly 70% of galvanized sheets, widely used in auto and home appliance industry, rely on imports. ![]() For instance, only Baosteel and Wugang are at present able to provide tin plates, which are widely used in food packaging. ![]()
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