Chinese steel giant Baosteel Group has recently inked an agreement with Fujian Province-based Wugang Iron and Steel Co., Ltd (Wugang Steel) for the restructuring of Desheng Nickel Co., Ltd, a subsidiary of Wugang Steel. With this deal, Baosteel will secure Desheng Nickel's overseas nickel assets and 70 percent of total shares in the company.
Desheng Nickel has an annual production capacity of 920,000 mt of nickel alloy and 820,000 mt of stainless hot rolled steel strip. Meanwhile, with its second phase project currently under construction, the company will add another 250,000 mt of nickel alloy, 400,000 mt of stainless cold rolled steel and 2 million mt of hot rolled nickel alloy plate to the current production capacity.
In addition, Desheng Nickel owns a 40 percent share in a nickel project in the Phillipines which has proven reserves of 150 million mt of nickel ore. Furthermore, the company has also set up a joint venture to develop a nickel project in Indonesia.