Hebei Steel sur le point d’acquerir l’élaborateur chinois d’aciers spéciaux Shijiazhuang (US)

March 7 (Bloomberg) — Hebei Iron & Steel Group is in talks to buy Shijiazhuang Iron & Steel Co., a specialty steelmaker in the provincial capital of Shijiazhuang city, Chairman Wang Yifang said today.“As the largest steel company, Hebei Steel will lead the consolidation of steelmakers in the province,” Wang told reporters while attending parliamentary meetings in Beijing.Hebei Steel is in talks with Citic Pacific Ltd. to acquire Shijiazhuang Steel, also known as Shigang, China Securities Journal reported on March 4. Citic Pacific bought a 65 percent stake in Shigang in November 2005 for 1.48 billion yuan ($216 million), according to the report. The government of Hebei Province that surrounds Beijing holds a 20 percent stake and the company’s management holds the rest, the paper said.Shigang, which produces 1.84 million tons of steel a year, had net income of 220 million yuan on sales of 6.68 billion yuan in 2009, the report said.Hebei Steel, which overtook Baosteel Group Corp. last year to become China’s biggest steel producer, plans to eliminate 10 percent of its current 40 million tons of production by the end of the year by disposing of outdated facilities, Wang said.Iron ore price talks are still ongoing and there is no plan by miners and steelmakers to change the current annual pricing mechanism, Wang told reporters, without elaborating.Link to Company News:{000709 CH <Equity> CN <GO>}

Source : Bloomberg

Posted in Strategy.

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