Liaoning Province-based Chinese steelmaker Bengang Steel Plates Co. (Bengang Steel Plates), the listed subsidiary of Benxi Iron and Steel (Group) Co. (Bengang Group), has announced that it will issue not more than 559 million non-public shares at RMB 7.15 ($1.21) per share with a total value not exceeding RMB 4 billion ($0.65 billion), which will be used in renovation of its cold rolled high-strength steel facilities, the construction of its new hot galvanized production line project, and also to pay back bank loans.
The renovation project for the cold rolled high-strength steel facilities will be divided into two phases, with the first phase to last two-and-a-half years and the second phase to last two years. The project in question will have an annual output capacity of 2.20 million mt of mild cold rolled steel, high-strength steel and super-high-strength steel, to fill the gaps in high-end steels used in domestic automotive and home appliance manufacturing.
Meanwhile, the hot galvanized production line construction project will last 28 months, while the facility will have a designed annual capacity of 450,000 mt of hot galvanized steel and high-strength steel.
In addition, RMB 1 billion ($0.16 billion) of the proceeds from the share issue will be used to pay back bank loans.