Chongqing-based Chinese steelmaker Chongqing Iron & Steel Group Co. (Chongqing Group) has issued a non-public stock plan to issue 1.285 billion shares at a price of RMB 3.86 ($ 0.60) per share to raise funds not exceeding RMB 4.962 billion ($ 0.78 billion) in value. In particular, part of the money will be invested in Chongqing Group - POSCO cold rolled sheet project and Chongqing Group - POSCO galvanized sheet project which are joint venture projects of Chongqing Group and Pohang-based Korean steelmaker Pohang Iron and Steel Co. Ltd (POSCO), while the remainder will be used to repay loans.
On August 6, Chongqing Group has inked a strategic agreement with POSCO on joint venture projects of cold rolled sheet and galvanized sheet. Accordingly, the two parties will jointly invest RMB 6.2 billion ($ 0.97 billion) in producing steel sheets for automobiles. The project in question has a designed annual output of 2.40 million mt of steel sheets after being in operation, indicating that Chongqing Group enters into high-end automotive steel market in due form.