Article at a glance:

Remaking China's giant steel industry

Demand for steel has grown strongly for two decades in China; both the domestic market and the industry supplying it are now the world's largest. But that industry is still too fragmented and unproductive to serve China's near-term needs. The government is pushing ahead with reform, and foreign and domestic private investors are cautiously starting to enter the industry. Now it is up to the managers of China’s steel mills to lift its performance.

The take-away

While China's steel mills might adopt a number of strategies to improve their operations, shedding the production mentality of the state-planning years is the most urgent need. Strategies for spurring operational productivity, a customer focus, and international alliances will help these mills get there.