According to Hunan Province-based Chinese steel group Valin Steel Company, it received provincial government subsidies totaling RMB 1.168 billion ($185.4 million) in 2011, of which RMB 1.156 billion ($183.5 million) will be entered in the company's balance sheet under operating revenue.
As per the company statement, Valin Lianyuan Iron and Steel, subsidiary of Valin Steel, received from Hunan provincial government RMB 12 million ($1.9 million) for heavy metal pollution prevention, RMB 20 million ($3.17 million) for environmental protection technology research, RMB 30 million ($4.76 million) for metallurgical automation technology research and RMB 510 million ($81 million) for environmental protection technology development.
In addition, the Hunan provincial government also allotted RMB 160 million ($25.4 million) to Valin Xiangtan Iron and Steel Company, RMB 140 million ($22.2 million) to Hengyang Valin Steel Tube, and RMB 296 million ($47 million) to their mother company Valin Steel.
Valin Steel foresees that the government subsidies in question will help it reverse its current situation of unprofitability.