Chinese steelmaker Shandong Iron and Steel Co., Ltd. announced on December 14 that its subsidiary Shandong Steel Group Rizhao Iron and Steel plans to purchase capacity belonging to Shandong Province-based Chinese steel producer Minyuan Steel Co., consisting of 1.19 million mt of pig iron capacity and 1.70 million mt of crude steel capacity, for a total of RMB 1.496 billion ($0.2 billion).
Rizhao Iron and Steel was set up in 2009, with Shandong Iron and Steel as its controlling shareholder, holding 50.6 percent of its equity.
Shandong Iron and Steel stated that Rizhao Iron and Steel’s purchase of capacity in Minyuan Steel will be conducive to the company's future production and management development.