Shandong Province-based Chinese steelmaker Shandong Iron and Steel Co., Ltd (Shandong Steel) has announced that it plans to increase the investment by RMB 2.081 billion ($0.32 billion) in its subsidiary corporation, Shandong Province-based Rizhao Steel Holding Group Co. (Rizhao Steel).
Rizhao Steel was set up in February 2009. Until now, its registered capital amounts to RMB 3.02 billion ($0.46 billion), with Shandong Steel holding 51 percent of its equity, while Huatai Securities Asset Management Co. holding another 49 percent of its equity. Recently, Huatai Securities Asset Management plans to increase investment in Rizhao Steel by RMB 2.0 billion ($0.30 billion), thus Shandong Steel also plans to increase investment by RMB 2.081 billion to keep its shareholding ratio the same as 51 percent.
Shandong Steel states that the increased investment will improve the company’s competitiveness.