e-magazine
The Hot Zone
China's newly announced air defense identification zone over the East China Sea aims to shore up national security
Current Issue
· Table of Contents
· Editor's Desk
· Previous Issues
· Subscribe to Mag
Subscribe Now >>
Expert's View
World
Nation
Business
Finance
Market Watch
Legal-Ease
North American Report
Forum
Government Documents
Expat's Eye
Health
Science/Technology
Lifestyle
Books
Movies
Backgrounders
Special
Photo Gallery
Blogs
Reader's Service
Learning with
'Beijing Review'
E-mail us
RSS Feeds
PDF Edition
Web-magazine
Reader's Letters
Make Beijing Review your homepage
Hot Links

cheap eyeglasses
Market Avenue
eBeijing

Top Story
Top Story
UPDATED: February 17, 2011 NO. 4 JANUARY 27, 2011
Company Profile: Minmetals Grows an Arm
China's largest mineral and metal giant accelerates its corporate restructuring and seeks global expansion
By LIU XINLIAN
Share

LIGHTING UP: A worker moves energy-saving lamps at a China Minmetals Firefly Lighting Co. Ltd. workshop in Jiangxi Province, which started production in July 2010 (ZHOU KE)

Last December was a busy month for China's leading business entity for all things metal and mineral, China Minmetals Corp. (China Minmetals), as it officially established another business arm, China Minmetals Corp. Ltd. (Minmetals Ltd.)—a significant step forward in the company's restructuring.

Minmetals Ltd. has a total of 24.6 billion shares, with China Minmetals controlling 96.5 percent and China National Metal Products Co. Ltd. holding 1 percent. The newly founded China Guoxin Holding Co. Ltd., the third state-owned asset management company of the State-owned Assets Supervision and Administration Commission (SASAC), also became a strategic investor of Minmetals Ltd., holding a 2.5 percent stake.

China Minmetals incorporated its ferrous metals, non ferrous metals, logistics, real estate and sci-tech divisions into Minmetals Ltd.

"Minmetals Ltd. will serve as a new platform to expand China Minmetals' overseas and domestic assets," said Zhou Zhongshu, President of China Minmetals.

Recent progress

Founded in 1950, China Minmetals is China's leading state-owned enterprise engaged in metal and mineral mining, trading and utilization. It also has a hand in the financial, real estate and logistics sectors.

Before China's reform and opening up in 1978, China Minmetals was the country's major foreign trader. It had a total trade volume of $33 billion from its founding to 1978, accounting for 19.41 percent of the country's total during that period.

Since 2000, China Minmetals has restructured its business units and made a new development strategy, which includes extending its business chain for exploration, development, mining, and smelting, rather than solely depending on metal and mineral trade.

By rethinking the company's mission and implementing a new development strategy, China Minmetals has realized rapid, sustainable growth since the beginning of the 21st century, said Zhou.

In 2009, China Minmetals recorded a total business revenue of 173 billion yuan ($26.2 billion) with profits of 3.15 billion yuan ($477.2 million), ranking 332nd on the 2010 Fortune Global 500 list. It was the 30th in the Top 500 Chinese Enterprises in 2010, released by the China Enterprise Confederation and China Entrepreneur Association last September.

Last year was the 60th anniversary of the company. Its sales revenue and profits for 2010 are expected to reach 200 billion yuan ($30 billion) and 6 billion yuan ($900 million), respectively. Its profits totaled 7.1 billion yuan ($1.075 billion) in 2008, with its sales revenue totaling 180.9 billion yuan ($27.4 billion) in 2008.

This year, the company's targets for sales revenue and profits are 240 billion yuan ($36 billion) and 8 billion yuan ($1.2 billion), respectively, Zhou said.

More than a trader

Since its founding, trade has been China Minmetals' major business operation. A report released by international management institute Roland Berger and Partner GmbH last May said, 93 percent of its business revenues and 50 percent of its profit were from trade and other trade-related businesses.

As a result of the country's reform in foreign trade, China Minmetals' positioning as the country's major trader has decreased, said the report. Now, trade may no longer be a viable force propelling China Minmetals' development in a sustainable and efficient way.

Since 2000 China Minmetals has begun acquiring resource companies, with the hopes of building itself into a large-scale comprehensive group.

1   2   Next  



 
Top Story
-Protecting Ocean Rights
-Partners in Defense
-Fighting HIV+'s Stigma
-HIV: Privacy VS. Protection
-Setting the Tone
Related Stories
-Zooming Into High Gear
-Back to the People
 
Most Popular
 
About BEIJINGREVIEW | About beijingreview.com | Rss Feeds | Contact us | Advertising | Subscribe & Service | Make Beijing Review your homepage
Copyright Beijing Review All right reserved