March 9, SteelGuru - It is reported that Jiangxi Province based Chinese steelmaker Ping Xiang Iron and Steel Company Ltd has signed an agreement with Jiangxi Yichun Heavy Industry Group Co Ltd for the new energy construction machinery cooperation program on March 5.
As per report, construction activities are the cornerstone for infrastructure development and this step is in the right direction.
According to the signed agreement, Pingxing Steel will progressively invest over CNY 5 billion to Jiangxi Yichun Heavy Industry during the 12th Five Year period. It strives for building YiGong Group into a first-class enterprise with annual sales revenue of CNY 20 billion. In 2011, Pingxiang Steel will first invest CNY 350 million to driven YiGong Group sales revenue exceed CNY 2 billion.
Pingxiang Steel's cooperation with YiGong Group marks the fact that domestic steelmakers are seeking for new economic growth points and stepping into non steel industries under the meager profit background of steel industry. In 2010, China leading and medium sized steelmakers realized profit of CNY 89.7 billion. The profit ratio of sales is 2.91%, far below the average whole industry 6.2%. China steel industry has entered into meager profit period as per the report released by Ministry of Industry and Information Technology of the People Republic of China.
