Shougang Steel to acquire 77.59 percent stake in Tonghua Steel

Monday, 19 July 2010 13:55:07 (GMT+3)   |  
       

Chinese steel producer Shougang Corporation is to acquire a controlling stake of 77.59 percent in Tonghua Steel (Tonggang), a Chinese steelmaker based in Jilin Province, from the State-Owned Assets Supervision and Administration Commission of Jilin Province, at a total estimated price of RMB 2.5 billion ($369 million).

The acquisition takes place within the framework of Shougang Steel's 12th five-year plan (2011-2015). Shougang Steel aims to double the turnover of Tonghua Steel by the end of the 12th five-year plan period by upgrading technology, adjusting production lines and via business diversification.

Tonghua Steel incurred losses both in 2008 and 2009. In 2009, the company posted a total loss of over RMB 1 billion ($148 million). Tonghua Steel is the biggest steel company in Jilin Province, with a current annual capacity of about 6 million mt of crude steel.

In 2009, Shougang produced 17.30 million mt of crude steel. The company is planning to raise its annual capacity to 30 million mt by the year 2012.


Similar articles

Hebei Steel Group plans further reorganization of steel industry in Hebei

01 Mar | Steel News

Guizhou Province to step up consolidation of local steel industry

18 Feb | Steel News

10 million mt capacity steel production base to be set up in Lvliang, Shanxi

14 Feb | Steel News

Rio Tinto-Chalco JV to develop Guinean iron ore project

29 Jul | Steel News

JFE to acquire 24 percent stake in Chinese pipe processor

26 Jul | Steel News

African Minerals and Shangdong Steel ink huge iron ore deal

14 Jul | Steel News

Ryerson buys out service center joint venture in China

13 Jul | Steel News

SinoCoking obtains coal mine consolidator status from China’s Henan Province

09 Jul | Steel News

WISCO partners Riversdale in Zambeze coking coal project in Mozambique

24 Jun | Steel News

CRM’s acquisition of 12.5 percent stake in African Minerals completed

16 Jun | Steel News