Hubei Province-based Chinese steelmaker Wuhan Iron and Steel (Group) Corp. (WISCO) has announced that it has received official approval from the Hubei provincial government for the transfer, free of charge, of the 22.4 percent stake in Hubei-based Echeng Iron and Steel Co. owned by Hubei Province Investment Co. to WISCO. With this transaction, Echeng Steel becomes a wholly-owned subsidiary of WISCO.
Echeng Iron and Steel Co., formerly called Echeng Iron and Steel Plant, was reorganized in January 2005, becoming a subsidiary of WISCO, with WISCO owning 77.6 percent shares of the company. According to WISCO, Echeng Steel's total assets are worth RMB 17.87 billion ($2.9 billion). In 2012, the company suffered a net loss of RMB 773 million ($125 million).