CITIC PACIFIC confirms plans to sell 65 percent stake in Shigang
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On March 10, Chang Zhenming, chairman of Hong Kong-listed CITIC PACIFIC Group, confirmed the company's plans to sell its 65 percent stake Hebei Province-based Chinese steel producer Shijiazhuang Iron and Steel Co., Ltd (Shigang).
Mr. Chang said that, following the sale of the stake, the company would give more attention to the development of another two special steel plant subsidiaries, i.e., Jiangsu Xingcheng Steel and Hubei Daye Special Steel. CITIC PACIFIC, whose main businesses are in special steel production and iron ore mining, is aiming to increase the annual production capacity of these two plants to 9 million mt each within the next two years.
As SteelOrbis previously reported, China's Hebei Steel Group confirmed last week that it is currently negotiating with CITIC PACIFIC for the purchase of Shigang. The outcome of the talks is expected to be known within one month.
Shigang produces special steel for the automotive industry, with an annual capacity of 2.6 million mt. In 2009, Shigang produced 1.84 million mt of crude steel and 1.75 million mt of finished steel.