SteelOrbis Shanghai
On December 30, three listed companies, Tangshan Steel, Handan Steel and Chengde Xinxin Vanadium and Titanium company, subsidiaries of Hebei Steel Group intended to merger together in stock for stock transaction. The three companies have reached a consensus and made a preliminary scheme that Tangshan Steel would probably annex the other two companies by swapping stocks in 1:0.775 and 1:1.089 proportion respectively with them. After the incorporation, Tangshan Steel will boast a total annual production capacity of 30 million mt of crude steels, becoming the largest steelmaker in China.
Except for the abovementioned three companies, Hebei Steel Group has several other wholly-owned subsidiaries such as Xuanhua Steel Group, Tangshan Stainless Steel company and Wuyang Steel company.
Xuanhua Steel Group has reached an annual production capacity of 6 million mt by the end of 2007, while Tangshan Stainless Steel company which is mainly producing plates and hot rolled narrow strips were able to produce 2.35 million mt per year. Meanwhile, Wuyang Steel company, the first production and research base majoring in exploiting wide and thick steel plates, has already achieved an annual production capacity of 3 million mt of crude steels and 2.6 million mt of wide plates.
Shougang Jingtang United Iron and Steel company, jointly invested by Tangshan Steel and Shougang Group, mainly focusing on the production of HRC, pipeline steel, CRC, galvanized steel coil, color coated sheet and cold rolled silicon steel has not yet been put into production. Hanbao Steel company, established in the joint investment by Handan Steel Group and Baosteel Group, is expected to be completely commissioned by the end of 2010, though its first and second stages are now ready for production.
Besides, Hebei Steel Group has ten directly subordinate mines, owning 1.037 billion mt of iron ore reserves.