Hebei Province-based Chinese steelmaker Shijiazhuang Iron and Steel Co. Ltd (Shigang) is to start the relocation of its smelting and hot rolling plants at the end of 2010. The facilities in question will be relocated from Shijiazhuang, capital city of Hebei, to Huanghua Port in Cangzhou, also in Hebei. At the same time, Shigang also plans to establish a base for special steel production at the new location.
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, 1.75 million mt of finished steel, registering a sales revenue of RMB 6.68 billion ($977.98 million), pre-tax profit of RMB 560 million ($81.99 million) and net profit of RMB 220 million ($32.21 million). At the same time, the company exported 143,000 mt of steel for the automotive industry, generating revenues of $73.34 million.
Meanwhile, as SteelOrbis reported earlier this week, China's Hebei Steel Group confirmed on March 3 that it is currently negotiating for the purchase of Shigang with CITIC PACIFIC, a Hong Kong-listed company whose main businesses are in special steel production and iron ore mining. The outcome of the talks is expected to be known within one month.