Reports have lately been circulating that Chinese steel producer Tangshan Steel Group intends to sell its shares in Shougang Jingtang United Iron and Steel Co., Ltd, its joint venture with domestic steelmaker Shougang Steel. Tangshan Steel and Shougang Steel hold respective stakes of 49 percent and 51 percent in the JV.
Shougang Jingtang United Iron and Steel was established in October 2005 by the two parties. However, Shougang Steel had been trying to raise its stake in the joint venture to 70 percent, but this move was rejected by Tangshan Steel.
Market insiders have revealed that the Hebei provincial authorities are planning to transfer the shares currently held by Tangshan Steel to local steel producer Kailuan Iron and Steel Group. This has not yet been officially confirmed.