CENS reported that China Steel Global Trading Corp of Taiwan’s CSC Group announced that its board of directors has passed a proposal to budget CNY 185 million or TWD 874 million, to acquire an 81.4% stake in Mayer Steel Pipe based in Guangzhou in China.

CSGTC said the stake acquisition of Mayer will help it expand the automobile and home-appliance market in southern China.

Capitalized at CNY 200 million, Mayer Guangzhou was founded in November 1995. Since its inception, the company has been CSC Group’s major client with procurement of steel products amounting to 50,000 tonnes to 55,000 tonnes per year.

After this acquisition, Mayer Guangzhou has become CSGTC’s fourth stronghold in southern China. It is expected that the acquisition of Mayer (Guangzhou) will help CSC Group to solidify its position in southern China in the field of expanding marketing channels.

In addition to the acquisition of Mayer (Guangzhou) stakes, last year CSC invested TWD billion to acquire 70% stake of Walsin Lihwa Group’s subsidiary in Changzhou of Jiangsu province, China which focuses on the production of titanium alloy, nickel alloy, specialty stainless steel and cutting-tool steel.

(Sourced from cens.com)