Introduction
Shougang Group is a large multi-national conglomerate corporation with headquarters in Beijing, China. Shougang Group was founded in 1919 by the renowned Chinese industrialist Zhang Jian after he purchased the steel mill of Shuncheng County, which later became the basis of Shougang Group. The group owns and controls a variety of industry sectors and has had extensive economic, financial and technological development.
Today, Shougang Group is one of China’s leading steel producers and one of the nation’s top 500 enterprises. It comprises numerous operating companies involving steel-making, coal-mining, power generation, chemical engineering, financial services, real estate and construction etc.
Business operations
Shougang has diversified operations in steel-making, coal-mining, industrial engineering, power generation, real estate, construction, finance and services. It’s major business segments encompass steel-making, coal-mining, domestic trading and real estate.
In the steel-making segment, Shougang specializes in the production of a wide array of products, including hot strip steel, cold strip steel, electrical steels, seamless pipes, tinplate, chequered plates and angles, among others. The company has a wide customer base, exporting products to countries around the world.
Shougang’s coal-mining segment is mainly engaged in the extraction of coal. It operates six coal mines, whose combined production capacity amounts to 30 million tons a year. In its engineering segment, Shougang has been a major player in the construction of key energy projects ranging from nuclear power to wind power, as well as essential infrastructure projects such as bridges and railways.
The group’s domestic trading segment engages mainly in the production and distribution of home appliances and electronic components. Lastly, the real estate business develops residential and commercial projects. The company has operations in over seven countries, including China, the United States and Singapore.
Management and corporate culture
Shougang has a highly capable and experienced management team, appointed by the group’s board of directors. Its core management team is composed of five members, each with decades of experience in their relative fields. The company’s corporate culture is heavily influenced by the Chinese business model, focusing on innovation, quality and cost efficiency.
Financial performance
In the financial year 2017, Shougang Group recorded an annual revenue of RMB 135 billion, which represented an 11.7% increase compared to the previous year. Its net profit for the same period was RMB 3.2 billion, representing a 1.5% decrease compared to the previous year.
Conclusion
Shougang Group is a world-renowned, China-based conglomerate. With significant experience of over 100 years, it has developed an extensive portfolio of businesses covering a variety of industries. It has highly capable and experienced management, a productive corporate culture and a robust financial position.
