SHANGHAI Sinoma International Engineering, part of the China National Materials Group, has exited the steel trading business because of excessive risk and losses incurred last year.
The steel business has been abandoned in view of "the companys development needs," it said in its 2012 annual report.
The company saw negative growth for the first time in 2012, when sales of 21.2 billion yuan ($3.41 billion) were down 17.6 percent from the previous year and net income tumbled 51.3 percent to 763 million yuan ($122.74 million).
The unit responsible for steel trading, Sinoma Equipment & Engineering, posted a net loss of 360 million yuan ($57.91 million).
A version of this article was first published by AMM sister publication Steel First.