CAN reported that Taiwan's largest steel maker China Steel Corp plans to acquire 5% stake in Dongbu Metal Co Ltd of South Korea for KWR 47.80 billion.

The board of directors of CSC has approved the investment project and both sides will enter into talks to iron out further details of the acquisition, China Steel said.

Mr LM Chung vice chairman of CSC told CAN “China Steel aims to stabilize the supply of ferroalloy, one of the important ingredients in steel production, through the investment. The investment is a kind of strategic alliance for both companies.”

Ferroalloy is the main product of Dongbu Metal and the Korean company has supplied the material to China Steel for about two decades.

Dongbu Metal, part of the Dongbu Group conglomerate, which includes metal production, agriculture, electronics, construction and trade, is the largest ferroalloy maker in South Korea.

(Sourced from CNA)