Hebei Province-based Chinese steelmaker Huaxi Iron & Steel Co., Ltd. (Huaxi Steel) has been acquired by Jingye Iron & Steel Co., Ltd. (Jingye Steel).
Previously on July 4, 100 percent equity of Huaxi Steel was opened up for transfer, with the bottom price being listed at RMB 3.0 billion ($0.4 billion).
Jingye Group is a steel-based company with five production bases, including its headquarters, Ulanhot Steel, British Steel, Guandong Jingye Steel, Guangdong Yuebei Steel. In 2022, Jingye Group registered a sales revenue of RMB 307.4 billion ($42.8 billion). The crude steel production of Jingye Group was 13.97 million mt in 2022, down from 15.38 million mt in 2021, while its production capacity was slightly over 15 million mt.
The acquisition in question will further expand Jingye Group’s presence in the iron and steel industry, and may also provide it with a new development opportunity in northern China. Huaxi Steel has a total capacity of 1.7 million mt, focusing on billet production (sizes 150 mm x 150 mm, 165 mm x 225 mm, and 165 mm x 280 mm).