September 07, 2008

Sinosteel to take major stake in EAF maker in Changchun

It is reported that Sinosteel Group and the Economic Committee of Changchun City’s Changchun Electric Furnace Equipment company signed a framework agreement on May 11th 2008 in Beijing.

Sinosteel Group and Changchun Electric Furnace will adopt cooperation mode including setting up of joint venture, Sinosteel will invest by cash and Changchun Electric Furnace will use its effective asset to invest. Sinosteel Group will hold at least 60% stake of the joint venture.

It is understood that after the reorganization, Sinosteel Group and Changchun Electric Furnace will strive to construct "China EAF base" with international advanced level, annual production value exceeding CNY 500 million, of which Sinosteel Group will invest CNY 100 million to CNY 150 million.

At present, Changchun Electric Furnace main products includes steel making electric arc furnace, refining furnace etc, the domestic market share reached more than 70% and export to more than 10 countries. The production value of 2008 is expected to reach CNY 200 million.