An official of the State-owned Assets Supervision and Administration Commission of China's Fujian Province has disclosed that Liaoning Province-based Chinese steelmaker Anshan Iron and Steel Corporation Limited (Ansteel) plans to acquire Fujian Province-based Chinese steel producer Fujian Sangang Corporation Ltd (Fujian Sangang).
Currently, the Fujian provincial authorities are in the process of arranging the acquisition of Fujian Sangang.
As previously reported, in 2006 Ansteel signed a framework agreement with the local government of Fujian Province for the restructuring of Fujian Sangang. However, moves towards restructuring were subsequently postponed
Within the scope of the planned acquisition, Ansteel will invest RMB 3.798 billion ($571 million) to build a subsidiary to be called Ansteel Cold Rolled Plate Co., Ltd in Fujian Province. The newly established company is expected to have an annual output of 1 million mt of cold rolled products.