Dongbei Special Steel Group, the struggling Chinese steelmaker, has ironed out a business revival plan, aiming to return to profit and slash leverage ratio in three years' time, the Economic Observer reported on Wednesday, citing unidentified sources.
According to the plan, made at an internal meeting on Sept. 20, Dongbei Special Steel aims to make a profit of 300 million yuan ($44.98 million) in 2018 on total revenue of 35 billion yuan, while reducing debt-to-assets ratio to below 60 percent, the newspaper said, without giving comparative figures.
Dongbei Special Steel, owned by the Liaoning provincial government in China's northeast rust belt, said on Monday it had defaulted on a one-year bond, marking the firm's ninth default this year. [L3N1C233O]
Calls to the company's media department for comment were not answered.
Earlier on Wednesday, a Chinese bond supervisory body said the unlisted steelmaker will be penalized for failing to release financial data on time.
Dongbei Special Steel is seeking government support for its debt restructuring plans, and will improve its operation, as part of efforts to turn the company into a special steel maker with global competitiveness by 2020, the article said.
Source : reuters.com