On December 29, Jiangsu-based Chinese special steel producer Jinsong Special Steel Co., Ltd successfully acquired the assets of the old plant of Jiangsu Tieben Iron and Steel Co., Ltd (Tieben Steel) at a total reserve price of RMB 710.8 million ($104.14 million).
On November 20, the new plant of Tieben Steel had been purchased by Changzhou Jiajiang Material Co., Ltd for a total payment of RMB 199.4 million ($29.21 million).
According to the assets evaluation carried out within the scope of the bankruptcy liquidation of Tieben Steel, the fixed assets of the old plant were assessed at RMB 1.11 billion ($162.63 million) including land value, while the fixed assets of the new plant were assessed at a total value of RMB 277 million ($40.58 million).
Jinsong Special Steel is based in Changzhou with an annual production capacity of approximately 600,000 mt of special steels, mainly serving rolling mills, as well as the shipbuilding and bridge building sectors.
As one company official put it, Jinsong Special Steel will secure a supply of molten iron from the old plant in question, which will also satisfy the demand for semis of other subsidiaries of the company.
Tieben Steel's old plant has an annual production capacity of 1.3 million mt of construction steel products such as rebar and wire rod.