October 13, 2008

Minmetals denies buying into a Shanxi Steel Maker

It is reported that toward recently report rumoring China Minmetals Corporation has merged with a Shanxi Province based steel mills to become an integrated trader in steel circle, its spokesman Mr He Jianbo however denied to Shanghai Securities News noting that he has learned from the subsidiary there is no share buying into any steel companies and the group hasn't shown any change in development strategy neither.

Further, the rumor report cites an official with Minmetals Hardware Products Import/export Co as saying, a host of Minmetals subsidiaries are trying to buy into domestic steel plants.

Mr He Jangbo yet said nobody in the relevant subsidiary had an interview with the reporters. So far, Minmetals has only Yingkou Medium Plate Co aside from steel distribution and the upstream business of raw materials. The group has no plan at the moment to ally with steel mills as there are very few choices available now while it may need a big fund. It's focus is on the Yongkou Medium Plate Co.

Minmetals has completed the industrial chain of ferrous metals, integrating upstream resources, mid reach of processing & smelting and downstream marketing network.

The group aims to raise iron ore and coking coal resources to 1.5 billion tonnes and 500 million tonnes respectively in five years, from present 530 million tonnes and 180 million tonnes, president of the group previously disclosed. It further wants to expand output of the medium plate co to 5 million tonnes from 2.5 million tonnes which will produce extremely thick and wide shipbuilding plate.

(Sourced from MySteel.net)