Baoshan freezes production at Shanghai plant

Chinese steelmaker Baoshan Iron & Steel (600019.SH) stopped output at one of its Shanghai factories, a reflection of the country’s economic woes weighing on the sector, The Wall Street Journal reported. The company has not disclosed future plans for the plant, which makes shipbuilding and oil industries products. “Poor downstream demand” and “industrial restructuring” because of the plant’s location has damaged the factory’s competitiveness, Baoshan said. In May, Chairman Xu Lejiang of the company said that Shanghai operations may be moved to a different area. Baoshan’s difficulties come amid government attempts to dampen the property market, which caused a fall in price of low-end steel used for building. The Shanghai plant has been mired in difficulties for several years; its previous owner, Pudong Iron & Steel was pushed out of an area in Pudong in 2007 and 2008 to pave the way for the 2010 World Expo.