(MENAFN) Chinese Baoshan Iron & Steel Co has halted operations at a loss-making plant in Shanghai, as near-three-year low steel prices weigh on the steelmaker, Reuters reported.
The plant, located in Shanghai's Luojing district, has been making losses due to weak demand and high costs, the firm said.
Baoshan bought Luojing plant in 2008 for USD2.22 billion. It has an annual capacity of 3 million metric tons.
The plant's main products are steel plates, which are used in shipbuilding and manufacturing.
Chinese steel makers, already struggling with piles of stock, have been struggling with a sharp fall in profits and sometimes losses since Beijing set tighter rules on the real estate sector, which hurt steel demand.
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