Chinese steelmaker Chongqing Iron and Steel Co. (Chongqing Steel), a subsidiary of Chongqing Iron and Steel (Group) Co., has announced that 1.996 billion of its shares were issued to Chongqing Steel Group on November 25, marking the completion of Chongqing Steel’s asset restructuring plan.
Meanwhile, Chongqing Steel still needs to pay RMB 16.936 billion ($2.77 billion) to Chongqing Steel Group for its Changshou new area iron and steel production facility. In addition, Chongqing Steel is also to raise not more than RMB 2 billion ($326.8 million) from a maximum of 10 investors.
The restructuring will result in Chongqing Steel’s annual steel production capacity increasing to 6 million mt from 3 million mt.