September 07, 2008

Shagang Group may merge Yongxing Steel

It is reported that Shagang Group, China's largest private steelmaker, intends to merge Yongxing Steel, the largest private one in Henan Province. If this comes true, Shagang will take an 80% stake of Yongxing Steel. This will be China's first trans-territory regrouping between two private steelmakers.

Local government in Anyang, where Yongxing Steel is based, has vowed to "promote the regrouping of Yongxing Steel and Shagang Group on August 4th 2007.

As China largest private steelmaker, Shagang Group boasts total assets of CNY 60 billion and can yield 15 million tonnes of iron, 18 million tonnes of steel, 18 million tonnes of steel products and 1 million tonnes of stainless steel plate every year.

Yongxing Steel reported sales revenue of CNY 3.8 billion in 2006, ranking the 46th among the country's private steelmakers.

(Sourced from MySteel.net)