Xinjiang Ba Yi Iron & Steel Co., Ltd. is principally engaged in the smelting, rolling, processing of iron and steel, as well as the production and distribution of pressing steel products. The Company provides steel products for construction and industrial production, including deformed steel bars, high-speed wire rods, hot-rolled plates, round steel, cold-rolled plates, galvanized plates, color coated plates and medium plates, among others. During the year ended December 31, 2010, the Company produced approximately 6.71 million tons of steel. The Company distributes its products primarily in domestic market, with Xinjiang autonomous region as its major market.

It was constructed by the Chinese People's Liberation Army stationed in Xinjiang with their intestinal fortitude and the save on food and clothing from September 1951, which was then called as Xinjiang Military Region Rear Service Dept. Steel Plant. On May 20, 1952, it was named as Xinjiang Military Region Bayi Iron & Steel General Plant. In 1953, it was handed over to the Department of Industry of Xinjiang Uygur Autonomous Region and renamed as Xinjiang Bayi Iron & Steel General Plant. On September 27, 1995, Xinjiang Iron & Steel (Group) Corporation with Xinjiang Bayi Iron & Steel General Plant as the main body was established and was renamed as Xinjiang Bayi Iron & Steel (Group) Corporation in November 1999. At the end of 2001 it was renamed as Xinjiang Bayi Iron & Steel Group Corporation. On January 16, 2007, Baosteel Group signed the agreement with the government of Xinjiang Uygur Autonomous Region to add capital and restructure Bayi Steel, on April 28 of that year, Bayi Steel joined Baosteel Group officially.

Bayi Steel possesses the complete production process from mining, ore dressing, sintering, coking, iron-making, steel-making to steel rolling. Bayi Steel has Yamansu iron ore mine and Mengku iron ore mine in Hami region and Aletai region, self-owned iron ore mines with remarkable deposits in south and north Xinjiang, and a coal mine mainly producing coking coal in Aiweiergou, Urumchi. Moreover, Bayi Steel also produces the products of steel further processing such as metal products.

Bayi Steel has an annual capacity of 7 million tons of steel, its products cover the long products, flat products and tubular products, and are sold mainly in Xinjiang and other provinces and regions in west China with some products exported to the central Asia area.

In 2010, Bayi Steel produced 6.0101 million tons of iron, 6.7131 million tons of steel, 6.3344 million tons of steel products; sold 6.2722 million tons of steel products, realized an operating revenue of RMB 26.097 billion and a pre-tax profit of RMB 1.449 billion.

After joining Baosteel Group, Bayi Steel focuses on cultivating and developing core competitiveness, makes full use of the advantages in iron ore mine and coal, sticks to the development road of low cost, satisfies the demand of regional steel consumption market by means of adjusting product mix, strengthening the weakness and supplying the deficiency, eliminating the outdated facilities, saving energy and reducing emission, enhancing the level of technology and equipment, making every effort to reach 10 million tons of steel production capacity in 2012 and 15 million tons of steel production capacity in 2015, and becomes the most competitive steel enterprise in west China and central Asia area.