By Wan Zhihong (China Daily)
Updated: 2008-01-18 10:35

State-owned Sinosteel Corp, China's leading raw materials and service provider, said its 2007 sales increased 83 percent as the company restructured its business.

The company notched up 111.24 billion yuan ($15.34 billion) in sales last year and 180 percent profit growth, according to Huang Tianwen, president of Sinosteel.

Huang said the company is also preparing for an IPO. It plans to reinforce its resources development, trade and logistics, and engineering, science and technology, he said.

Sinosteel's businesses cover metallurgical mining resources exploitation and processing, metallurgical raw materials and products, trade and logistics, and technical support and equipment manufacturing.

The company has increased its iron ore and chrome ore capacity, said Huang.

Last year, Sinosteel signed a deal with China's largest steelmaker Baosteel, under which the two companies will boost cooperation on the supply of iron ore and chrome ore, ferroalloy and mining equipment.

The company is trying to accelerate its overseas development. It has developed iron ore and chrome ore resources in countries such as Australia, India and South Africa.

China Africa Development Fund's debut investment deal in Africa, with more than $90 million, included Sinosteel projects.

China, which produces one-third of the world's steel, will see 15 percent growth in iron ore imports for last year, industry insiders said.

In 2007, the country is expected to have imported 375 million tons of iron ore, an increase of 49 million tons from 2006, Luo Bingsheng, vice-chairman of the China Iron &Steel Association, told China Daily earlier.

China's largest steelmaker Baosteel said Chinese steel companies are still in talks with the world's three largest miners - Australia's BHP Billiton and Rio Tinto and Brazil's CVRD - on the iron ore contract price. The contract price has increased sharply for the last three years.