Liaoning Province-based Chinese steelmaker Lingyuan Iron and Steel Co. (Lingyuan Steel) has announced that it will invest RMB 1 billion of its own funds to set up Lingyuan International Steel Trade Co. Lingyuan Steel will hold a 100 percent stake in the new company.
The scope of Lingyuan International Steel Trade Co.'s activities will include trading of metallurgical products and by-products, minerals, coal, metals, electrical materials, wire and cable, building materials, refractory materials, and other goods.
Lingyuan Steel said that the establishment of the new company will help it to integrate its raw material purchases and its product sales, while it will reduce logistic costs, broaden its sales channels, improve its marketing of products and increase its ability to minimize exposure to market risks.