Baosteel Packaging reports growth amid tough market conditions
China-based canmaker Baosteel Packaging has reported third-quarter sales of CNY2.2 billion (USD300 million), a 7% year-on-year increase.
Despite the growth, profits fell by 25% to CNY630m (USD87m), reflecting what the canmaker said were efforts to navigate challenging market conditions.
To meet growing demand, it is planning new plants in Xiamen, Fujian Province, and in Long An, Vietnam. The company also intends to raise up to CNY698m (USD96m) to fund additional projects in Anhui and Guizhou provinces, and in Cambodia, focusing on aluminium two-piece can manufacturing.
Earlier this year Baosteel was set to become China’s largest canmaker with the takeover of CPMC before it was overtaken by Huarui Fengquan Development, parent company of Chinese competitor ORG Packaging.
Domestically, Baosteel Packaging has canmaking plants in all of China’s major regions, while internationally, it has leveraged China’s One Belt, One Road initiative to establish facilities in Vietnam, Cambodia, and Malaysia. The company now manages more than 10 plants worldwide.
Meanwhile, its parent company, Baoshan Iron & Steel reported a stark 65% decline in Q3 net profit, falling to CNY1.34bn (USD188m) from CNY3.8bn a year earlier. Over the first nine months of 2024, Baosteel’s profits dropped nearly 30%, reflecting challenges in China’s steel industry due to weak demand, falling steel prices and sluggish property and infrastructure markets.
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