On December 11, Hebei Province-based Chinese steelmaker Hebei Iron and Steel Corporation Ltd said it plans to carry out its second round of mergers involving private sector steel enterprises in Hebei Province, with the company expecting to sign relevant agreements with the companies in question in the coming period.
In the first round of mergers, Hebei Steel had signed merger agreements with five private sector steel enterprises in Hebei Province, representing an aggregate annual steel production capacity of 10 million mt. According to the agreements, Hebei Steel Group acquired 10 percent stakes in each of the companies.
Yan Xiujun, general manager of the sales department of Hebei Steel Group, commented that Hebei Steel is currently focusing on the operations of these newly-merged private sector steel companies and will cooperate with these companies in terms of raw material purchases.