Guangxi Zhuang Autonomous Region-based Chinese steelmaker Liuzhou Iron and Steel Group has announced that it will exit from Guangxi Zhuang Autonomous Region-based Chinese steelmaker Guangxi Iron and Steel Group Ltd (Guangxi Iron and Steel). After Liuzhou Steel’s exit, the registered capital of Guangxi Iron and Steel will decrease to RMB 8 billion ($1.25 billion) from the current registered capital of RMB 46.837 billion ($7.35 billion).
Guangxi Iron and Steel Group was jointly set up in 2008 financed by the State-owned Assets Supervision and Administration Commission(SASAC) of Guangxi Province and
Hubei Province-based Chinese steelmaker Wuhan Iron and Steel Group (WISCO), with respective stakes of 20 percent and 80 percent, with the 20 percent stake considered to be an asset of Liuzhou Steel Group. In particular, Guangxi Iron and Steel Group is responsible for the construction of the Fangchenggang iron and steel base project in Guangxi Province.
After Liuzhou Steel Group’s divestment of its 20 percent stake, WISCO will exclusively possess the Fangchenggang iron and steel base project.