Baosteel Takes Nice Baby Step Outside China 宝钢终於走出海外第一步

There’s an interesting report in today’s China Daily saying steel titan Baosteel (Shanghai: 600019) is taking its first small step outside China with plans to build a beverage can factory in Vietnam to better serve the thirsty Southeast Asia market. Details in the report, citing an unnamed senior official, are thin, except for the factory’s location. But this is exactly the kind of move that Baosteel and other expansion-minded Chinese firms need to make it they want to become global players. Vietnam is close enough to home to be comfortable for Baosteel, and it’s a developing market similar to China’s own. What’s more, Baosteel already operates a similar plant making cans in China for Pepsi (NYSE: PEP) and Coke (NYSE: KU), two beverage giants that can provide valuable support in a new market like Vietnam. I’m guessing initial investment in this plant is probably small, but it’s easily expandable and is exactly the kind of investment that could yield handsome returns for Baosteel in the next few years.

Bottom line: Baosteel’s move into Vietnam is a smart first step outside China that should yield strong returns in the next few years and serve as a springboard into other global markets.

今天的《中国日报》说中国钢铁业巨无霸宝钢<600019.SS>走出了海外扩张的一小步，计划在越南建立一家饮料罐生产企业，服务东南亚市场。除了新厂的位置外，报导并未提供很多细节。但是，对於意图海外扩张、成为全球性企业的的宝钢和其他中国公司来说，这绝对是正确的一步。首 先，越南距中国足够近，操作起来并不太难，而且越南与中国一样是一个发展中市场。而且，宝钢在中国国内已经拥有一家为百事可乐<PEP.N> 和可口可乐<KU.N>生产饮料罐的公司。这两家饮品巨头对宝钢越南建厂都可以提供宝贵支持。估计新厂初期投资不高，但应该易于扩展，而且在 未来几年可能获得丰厚回报。

一句话：宝钢在越南建厂是聪明的一小步，也是全球扩张的一个跳板。