On November 29, Jiangxi Province-based Chinese steelmaker Fangda Special Steel Technology Co. announced that it has increased its stake in Jiangxi-based steel producer Pingxiang Steel (Pinggang) in cooperation with its parent company Liaoning Province-based Fangda Group. Accordingly, Fangda Special Steel Technology now holds a 29.72 percent stake in Pinggang, while Fangda Group holds 11.77 percent.
As of June 30, 2012, Pinggang’s total assets were estimated at a value of RMB 30.961 billion ($4.96 billion), with its debts of RMB 24.249 billion ($3.83 billion) equal to 78.32 percent of the total.
The annual steel output capacity of Pinggang is 11 million mt, while in 2011 its sales revenue exceeded RMB 40 billion ($6.41 billion) with profits of over RMB 300 million ($48 million). In January-October this year, Pinggang’s total output of pig iron was 7.7682 million mt, up 1.09 percent, while its steel production amounted to 7.3276 million mt, up 4.63 percent, both year on year.