September 08, 2008

Wuhan Steel gets approval to buy assets from parent

Wuhan Steel announced that it has gained approval from State owned Asset Supervision & Administration Commission of the State Council over purchasing assets of CNY 8.2 billion (USD 1.11 billion) from its state owned parent WISCO.

The listed mill plans to buy coke, oxygen, scrap steel, railway and other steel related assets from its parent company. The net value of the assets Wuhan Steel is buying is CNY 8.159 billion representing 37.4% of the listed company's total net assets at the end of last year.

Wuhan Steel hopes to extend the steel production chain to upper stream fields of coking, industrial gas preparation and metal recycling etc and save costs through the acquisition.

(Sourced from MySteel.net)