Chinese steelmaker Chongqing Iron and Steel Co., Ltd has announced that its board of directors has approved the plan to purchase the assets of Changshou Iron and Steel for RMB 3.551 billion ($0.55 billion). The assets Chongqing Steel plans to purchase include blast furnaces, sintering machines and coke ovens which were leased from Changshou Steel previously.
According to the evaluation report, the assets are valued at RMB 3.447 billion ($0.54 billion).
In the first quarter this year, Chongqing Steel registered an operating revenue of RMB 9.978 billion, up 92.7 percent year on year, while it posted a net profit of RMB 1.092 billion, up 26078.1 percent year on year. The steelmaking capacity of Chongqing Iron and Steel is 8.3 million mt per year.
$1 = RMB 6.4078