Chinese state-run Hebei Iron & Steel Group hopes to return to profit by 2015, according to chairman Yu Yong.
Having made a profit in 2011 of 1.3 billion yuan, the company made a loss in 2012 of 1.2 billion yaun (US$198 million.
Yong believes that production costs can be reduced by at least 20% and that there must be a strong focus on labour cuts. He described the company’s current problems as both ‘shocking and terrifying’.
Yong replaced former chairman Wang Yifang who is said to have resigned due to ‘work changes’.