It is reported that Hunan Valin Group is accelerating the consolidation pace following the overall strategic cooperation with FMG, the third biggest iron ore miner in Australia.

As the top steelmaker in local, Valin Group will participant in detailed rules constitution for local steel consolidation together with related government bodies to fully implement State Council's revitalization plans for ten pillar industries and take the lead in consolidating local steel and iron ore resources.

Mr Li Xiaowei president of Valin said the group is mulling over to acquire Lengshuijiang Steel Group. He said that "Most local steel mills have closed or being regrouped and there will be only one steelmaker in Hunan once Valin acquired Lengshuijiang. He added that we are contacting with two or three steel companies for mergers and acquisitions. But he did not mention the name of these firms.”

Statistics show Hunan produced 12.99 million tonnes of crude steel last year with sales revenue and profit posting at CNY 117 billion and CNY 3.2 billion respectively of which, Valin Group yielded 10.83 million tonnes of crude steel, and earned sales revenue of CNY 70 billion and profit of CNY 3.1 billion.

With total assets of CNY 3.4 billion, Lengshuijiang Steel Group has annual production of 3 million tonnes of pig iron, 3.2 million tonnes of crude steel and 3.3 million tonnes of finished products with businesses covering steelmaking, machine manufacturing, energy & coal chemical industry, logistics, construction and real estate development. It is one of the three steel production bases in Hunan.

(Sourced from.Mysteel.net)
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