Chinese steelmaker Baoshan Iron and Steel (Baosteel) has announced that it has not exercised its right of first refusal in relation to the investment by its parent company Baosteel Group Corporation in Guangdong Province-based Baosteel Zhanjiang Iron and Steel (Zhanjiang Steel). Baosteel cited the long construction period and the size of the investment required for its decision.
Nevertheless, Baosteel still retains the right of first refusal relating to the acquisition of the facilities when their construction has been completed.
Accordingly, Baosteel Group Corp. will be the sole investor in the facilities, which will have a registered capital of RMB 8 billion ($1.22 billion) for the construction of the first phase.
Baosteel chairman He Wenbo said that Zhanjiang Steel will be put into operation after three to five years at the earliest.