Shandong Province-based Chinese steelmaker Shandong Iron and Steel Co. (Shandong Steel) announced on December 30 that it has sold an 80 percent stake in Jinan Steel International Trade Co. and a 100 percent stake in Shandong Laiwu Steel International Corporate (LSI) to Shandong Steel International Trade Co. for RMB 88 million ($14.4 million) and RMB 496 million ($81.3 million) respectively.
Shandong Steel stated that it sold the two assets to improve its asset structure and to increase its profitability. The company is expected to make a profit of RMB 277 million ($45.4 million) from this transaction. For the January-September period of 2013, Shandong Steel recorded a net loss of RMB 128 million ($21.0 million). The sales of the assets in question is expected to boost Shandong Steel's financial results for 2013.