On March 1, Baosteel Group and Hangzhou Iron and Steel Group signed an agreement whereby the former is to invest RMB 2.02 billion ($296 million) to procure a 56.15 percent stake in Ningbo Steel.
The investment constitutes the first cross-regional restructuring move in China's iron and steel industry following the central government's announcement of its stimulus plan for the sector.
Built with a total investment of RMB 17 billion, Ningbo Steel has a yearly capacity of four million tons. Phase one of the project for the plant was completed and put into operation in May 2007.