Gansu Province-based Chinese steelmaker Jiuquan Iron and Steel Group (JISCO) has announced that its unlisted subsidiary JISCO Tianfeng Stainless Steel will be incorporated within another of its subsidiaries, namely, JISCO Hongxing Iron and Steel Co. (Hongxing Steel), and will operate as a subsidiary of Hongxing Steel. With this merger, all of JISCO's steel business will now have listed status.
Accordingly, Hongxing Steel will acquire all the assets, loans and business of Tianfeng Stainless Steel. The merger will have benefits including shared raw material procurement as well as shared distribution. Hongxing Steel will also be able to adjust its production of carbon steel and stainless steel in line with market demand. The merger will help to reduce Hongxing Steel's costs, improve its efficiency, and further increase its competitiveness.