BEIJING, Sept. 29 (Xinhua) -- In the first half of 2022, Inner Mongolia Baotou Steel Union Co., Ltd. (Baogang United Steel, 600010.SH) has witnessed significant progress in lowering costs, making added profit of nearly 232 million yuan (about 32.27 million U.S. dollars).
The Chinese steel maker, based in north China's Inner Mongolia Autonomous Region, has taken multiple measures from both ends of procurement and sales since the beginning of this year in a bid to increase revenue.
Through dynamically adjusting the procurement strategy to timely respond to market change, the company has efficiently brought down the purchase cost. By introducing the procurement model of China Baowu Steel Group and making integrated purchasing plans, the company is expected to reduce over 30 million yuan of costs this year, said Wang Wei, a representative from the company's purchasing management department.
On the sales side, the company has made extensive efforts to improve product structure. By focusing on key products, strengthening sales channel construction and further shortening the sales radius, the sales volume within the 500 kilometers surrounding region has increased by 25 percent year on year (excluding that of building materials), according to the company.
Multiple types of products of Baogang United Steel, including heavy rail, pipeline steel, hot rolled products and so on, have won the bids of key projects in China. The company has also been making effective efforts to expand markets in the Belt and Road countries.
In the future, the company will continue to make innovations in its operational practices, striving to further achieve cost reduction, quality improvement and efficiency enhancement.
(Edited by Yu Huichen with Xinhua Silk Road, yhc0267@163.com)
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