Wuhan Steel to acquire Hubei steel plant
According to recent news in the market, Chinese steel producer Wuhan Iron & Steel Group agreed to acquire a steel mill in
China's Hubei province. The acquisition means that Wuhan Iron & Steel will become
China's second largest steel producer in 2006.
The deal saw the Hubei government hand over a 51% stake in the Echeng Iron & Steel Corp to Wuhan Iron & Steel Group.
Moreover, Wuhan will expand its
production capacity to 17 million tons in 2006. Echeng will be responsible for 3 million tons of Wuhan's total
production.