Hong Kong-listed steelmaker China Oriental Group Company Limited has announced that on October 21 its subsidiary company Jinxi Iron and Steel Group and Foshan Transportation, stakeholder of Caofeidian Port Company, entered into a sale and purchase agreement according to which Jinxi Iron and Steel Group will acquire a 10 percent equity interest in Caofeidian Port Company from Foshan Transportation for a consideration of RMB 50 million. In due course Jinxi Iron and Steel Group expects to invest a further sum of RMB 45,000,000 in pro rata to its equity interest in Caofeidian Port Company.
Meanwhile, following announcements by the Tangshan municipal authorities of restrictions on energy consumption and steel production, Jinxi Iron and Steel Group has partially suspended operations at its H-section steel production lines since October 16 and has further suspended all production relating to operations at it subsidiary Jinxi Wan Tong since October 29. Jinxi Iron and Steel Group plans to partially operate its H-section steel production lines in November so as to achieve production of approximately 60,000-80,000 mt of H-section steel products during the month in question. As a result, Jinxi Iron and Steel Group expects that during the fourth quarter of the current year strips and strip products will constitute a relatively higher share of its overall output volume.