Posted on 02 Jan 2024
China Baowu Steel Group (Baowu) sealed strategic investment agreements on December 28 with the Shandong provincial government on the takeover of the state-owned Shandong Iron and Steel Group (Shangang), according to a post by the steel giant on its official WeChat account on Thursday.
According to the investment agreements, China Baowu is set to secure a substantial 49% stake in Shandong Iron and Steel. Additionally, its listed-arm Baoshan Iron & Steel Co (Baosteel) will hold a 48.6% stake in SD Steel Rizhao Co., Ltd., as outlined in the deal.
Shangang's crude steel output totaled 29.4 million tonnes in 2022, ranking the 11th globally and the 7th among its domestic peers, while China Baowu topped the list with a whopping 131.8 million tonnes, according to World Steel Association (WSA) statistics.
Apart from the large steel capacity, Shangang has completed the ultra-low emission renovation at all its steelworks and its Rizhao company enjoys advantages of a deep harbour as a coastal steel-producing base, as per the post.
The acquisition marks Baowu's enhanced expansion in the northern coastal regions and its further step toward consolidating a modern low-carbon metallurgy industry chain, the steel giant stated in the post.
Source:Mysteel Global
