Baowu Group to become a shareholder in Chongqing Steel

Tuesday, 02 July 2019 15:03:21 (GMT+3)   |   Shanghai
       

Chen Derong, president of major Chinese steelmaker Baowu Group, has stated that Baowu Group will formally become a shareholder of Chongqing Iron and Steel via reorganization of Chongqing Steel through Siyuanhe (Shanghai) Steel Industry Equity Investment Fund Center (Limited Partnership) (“Siyuanhe Fund”). Siyuanhe Fund was set up in April this year with the aim of pushing forward the restructuring and upgrading of the steel industry. It has a total potential capital in the range of RMB 40-80 billion (($6.03-12.07 billion). Siyuanhe Fund is the first iron and steel industry restructuring fund in China, jointly established by China Baowu Steel Group Corporation Limited, US-based WL Ross Co., US-China Green Fund and China Merchants Finance Holdings, with a registered capital of RMB 1 billion respectively held by the four shareholders in question in a ratio of 25 percent, 26 percent, 25 percent and 24 percent.

On June 2 this year, Anhui Province-based Chinese steelmaker Masteel announced that the State-owned Assets Supervision and Administration Commission of Anhui Province signed an agreement for the free transfer of a 51 percent stake in Anhui-based Masteel Group to Baowu Group. On June 27, the State-owned Assets Supervision and Administration Commission (SASAC) approved the agreement. Accordingly, Baowu Group’s overall crude steel capacity increased to 90.0 million mt. 

According to the latest plan, the crude steel capacity of Chongqing Iron and Steel will amount to 10.0 million mt after technical transformation, which means that Baowu Group will have an overall crude steel capacity of 100.0 million mt.


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