It is reported that Chinese steelmaker Chongqing Iron and Steel Group has announced that in 2012 it plans to acquire all outstanding shares in Chongqing Steel Group Iron Company to build a new steelmaking base in Jiangjin and to establish a new terminal at Taizhou port with a total overall investment of CNY 2.2 billion.

As reported in the company statement, Chongqing Steel's buyout offer for Chongqing Steel Group Iron Company will be CNY 185.756 million at most. As of December 31 2010, Chongqing Steel Group Iron Company's total assets were valued at CNY 305.52 million. In 2010, its net profit hit CNY 5.12 million.

In addition, Chongqing Steel will invest CNY 1.046 billion in total to construct a new steelmaking base in Jiangjin Zone, Chongqing. The project includes a coking furnace a sintering machine, a blast furnace and other related equipment with a targeted annual output capacity of 660,000 tonnes of molten iron.

Furthermore, Chongqing Steel also plans to establish a new terminal at Taizhou Port in Chongqing, which will be managed by its subsidiary Sanfeng Jingjiang Port Logistics, with a total investment of CNY 989.92 million. The designed annual throughput of the terminal will be 9 million tonnes.

(Sourced from SteelOrbis)
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