October 08, 2008

Baosteel invests CNY 200 million in Xinyu Steel

It is reported that Jiangxi Province based Xinyu Iron & Steel Co Ltd's listed unit claimed in a statement that Baosteel has subscribed for 20 million shares for CNY 200 million in total taking 1.44% of its stake. Xinyu Iron & Steel Co Ltd's had issued 200 million A shares to eight companies at CNY 10 per share to raise CNY 1.95 billion.

On November 2nd 2007, Xinyu Iron & Steel Co Ltd acquired 100 million shares in its subsidiary Xinyu by CNY 6.71 billion worth of steel assets and made its overall listing. Its business thus expanded to steels as well from previous metal articles alone like steel wire, strand, aluminum clad steel wire, electrical wire and cable, and the company is then renamed to Xinyu Iron & Steel Co.

It's reported Jiangxi's government and the state owned asset supervision and administration commission of the province had expected Baosteel to regroup Xinyu and make it bigger. There are no detailed plans revealed yet.

In 2006, Xinyu Steel, the largest steel mill in Jiangxi province, witnessed 5.09 million tonnes of steel production. It is a ferroalloy production base, with 25 key enterprises, 14 wholly owned subsidiaries, 5 economic entities, and 15 shareholding enterprises.