Shanghai-based Chinese steelmaker Baosteel has announced that it plans to sell its 40 percent stake in Shanghai Krupp Stainless Co., Ltd ( Shanghai Krupp Stainless) at a price of RMB 1.927 billion ($0.30 billion). Baosteel requires that the buyer should be a domestic company with net assets of not less than RMB 3 billion.
Shanghai Krupp Stainless was founded in 1997 as a joint venture by Finland-based Outokumpu and Baosteel. In 2014, Shanghai Krupp Stainless achieved an operating revenue of RMB 2.903 billion ($0.45 billion), with a net loss of RMB 129 million ($19.91 million), while in the January-October period of the current year, it registered an an operating revenue of RMB 2.102 billion ($0.33 billion), with a net profit of RMB 179 million ($27.62 million). On October 19 this year, Outokumpu inked an agreement with Shanghai-based Lujiazui International Trust Company (Lujiazui International Trust), a subsidiary of Shanghai Lujiazui Financial Development Co., Ltd, for the sale of a 55 percent stake in Shanghai Krupp Stainless to Lujiazui International Trust, while it will continue to keep a five percent stake in the company.