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SteelOrbis Shanghai The largest Xinjiang Province-based mill, Bayi Iron & Steel Group is to ink an asset restructuring agreement with Baosteel Group on January 15. According to the deal, Baosteel will pay RMB 3 billion ($380 million) for the restructuring of Bayi Steel and for a major stake in the mill. On March 11, 2006, Baosteel Group signed a strategic agreement with Bayi Steel. Subsequently, Baosteel assigned a team consisting of experts proficient in customer relations, human resources, finance, project management, iron-making, and steel-making, to conduct detailed research regarding Bayi Steel and also to make some adjustments to Bayi’s development plan. In October, the two parties jointly worked out Bayi’s new development schedule. According to the latest plan, Bayi Steel’s steel-making capacity will reach 4 million mt in 2007 and 6 million mt in 2008. Ranked 30th in China, Bayi Steel produced 3.6 million mt of steel in 2006, with sales revenues totaling RMB 10.2 billion ($ 1.3 billion). As the largest and most competitive mill in China, Baosteel achieved steel output of 22 million mt in 2005, ranked 6th in the world.