Yongjin Ends Investment in Indonesian CR Stainless Steel Project

Zhejiang Yongjin Metal Technology, a listed company based in China, has made a significant announcement regarding its investment in a cold rolled stainless steel
Zhejiang Yongjin Metal Technology
Zhejiang Yongjin Metal TechnologyImage Source - Nantong

Zhejiang Yongjin Metal Technology, a listed company based in China, has made a significant announcement regarding its investment in a cold rolled stainless steel strip project in Indonesia. The company revealed that it has decided to terminate its involvement in the project, as approved by the board of directors. The management of Yongjin has been granted the authority to cancel the registered project company and address any related matters.

In early 2022, Yongjin embarked on the project in collaboration with Zhejiang Qingzhan Industrial Company. The joint venture aimed to establish a stainless cold rolling facility in the Tsingshan Park located in Morowali, Indonesia, with a production capacity of 700,000 tonnes per year. However, construction has yet to commence as of the reporting period.

Yongjin emphasizes that the termination of the Indonesian project will not have a significant impact on the company's financial status and operating results. This assertion is supported by the fact that no actual investment had been made thus far.

In a separate development, Yongjin has recently signed a contract to acquire a 40% equity stake in Jiangsu Yinyang Stainless Steel Pipe Company. The equity purchase, amounting to CNY 79.75 million ($11.22 million), will increase Yongjin's control over Yinyang to 91%, with the remaining stake held by an individual.

Yongjin clarifies that this acquisition is part of their strategic efforts to enhance the management and expand their business in the stainless steel water pipe sector.

logo
SteelGuru Business News
www.steelguru.com