Xinjiang-based Chinese steelmaker Bayi Iron and Steel Co. (Bayi Steel), a subsidiary of Chinese steel giant Baosteel Group, has announced that it plans to increase the registered capital of its wholly-owned subsidiary Nanjiang Steel Baicheng Co. (Nanjiang Steel) by RMB 2.7 billion ($442.6 million).
The capital increase will be carried out in two phases. The first phase of the investment amounting to RMB 1.2 billion ($196.6 million) is to be completed before March 31, 2014. The second phase for a total of RMB 1.5 billion ($245.9 million) will be completed before December 31, 2014. Accordingly, the registered capital of Nanjiang Steel will rise from RMB 500 million ($82.0 million) to RMB 3.2 billion ($524.6 million).
As of September 30, 2013, the unaudited total assets of Nanjiang Steel amounted to RMB 9.991 billion ($1.637 billion), while total liabilities stood at RMB 9.877 billion ($1.619 billion). Bayi Steel stated that the investment in Nanjiang Steel is from its own funds and will provide financial support for the subsidiary.