Hebei Province-based Chinese steelmaker Hebei Iron and Steel Co. Ltd. (Hebei Steel), recently announced it will take over domestic steelmaker Xuanhua Iron and Steel Group Co. Ltd (Xuanhua Steel Group) and receive a 53.12 percent stake in another domestic mill Wuyang Iron and Steel Co. Ltd (Wuyang Steel) from its own parent company Hebei Steel Group. The Hebei provincial government has given the go-ahead to this restructuring of assets.
Xuanhua Steel Group (Xuanhua) is currently owned by Tangshan Iron and Steel Group, while the stake in Wuyang Steel stake is currently held by Handan Iron and Steel Group Co. Ltd. (Handan). Both Tangshan Steel and Handan Steel are companies of Hebei Steel Group.
The major products of Xuanhua Iron and Steel are wire rod, rebar, small sections and tubes. In first three quarters of 2010, the sales revenues of the company were RMB 17.828 billion ($2.69 billion), with net profit of RMB 193 million ($29.15 million). The main product of Wuyang Iron and Steel is heavy plate. In the first three quarters of 2010, the sales revenues of the company were RMB 9.082 billion ($1.37 billion), while its net profit was RMB 110 million ($16.62 million).