Posted on 02 Jun 2023
China-listed Zhejiang Yongjin Metal Technology Co., Ltd. on 1 June announced its decision to terminate its investment in a cold rolled stainless steel strip project in Indonesia, Kallanish notes.
The plan has been approved by the board of directors of Yongjin, and the management was authorized to cancel the registered project company and handle other matters.
In early 2022, Yongjin started to promote the project with Zhejiang Qingzhan Industrial Company. They decided to take 60% and 40% of the project with 700,000 tonnes/year of stainless cold rolling capacity. The plant would be located in the Tsingshan Park in Morowali, Indonesia, but construction has not yet started as of the time of reporting.
Yongjin declares that the termination of the Indonesian project will not have a significant impact on the company's financial status and operating results because no actual investment has occurred.
Meanwhile, Yongjin has signed a contract for the acquisition of 40% of Jiangsu Yinyang Stainless Steel Pipe Company. The CNY 79.75 million ($11.22m) equity purchase will boost Yongjin’s control of Yinyang to 91%, with the remaining held by an individual.
“This is for the better management and expansion of our stainless steel water pipe business,” Yongjin explains.
Source:Kallanish
