Hebei Province-based Chinese steelmaker HBIS Company Limited has announced that it plans to increase its capital contribution to HBIS Laoting Steel Co., Ltd. with RMB 4.8 billion ($0.7 billion) in cash. HBIS Laoting Steel is a subsidiary of HBIS Company, with a registered capital of RMB 21.27 billion ($3.1 billion). HBIS Company holds 80.21 percent equity in it, while Hebei Steel Industry Transformation and Upgrade Fund (Hebei Steel Industry Transformation Fund) holds the remaining 19.79 percent. After the increase in capital contribution, the registered capital of HBIS Laoting Steel will increase to RMB 25.15 billion ($3.7 billion), while HBIS Company will hold 83.26 percent equity and Hebei Steel Industry Transformation Fund will hold 16.74 percent.
HBIS Laoting Steel is principally engaged in iron and steel smelting, as well as steel rolling and processing. It is also involved in metallurgical technology development and the promotion of energy-saving technologies. It serves as a coastal development base for HBIS Group's industrial upgrading and capacity relocation.
HBIS Company Limited’s latest move will inject capital and optimize the industrial structure of HBIS Laoting Steel, which will be consistent with the company’s long-term interests.
