Posted on 09 Aug 2024
Jingye Group (Jingye), a privately-owned steelmaker headquartered in North China's Hebei province, received formal approval on August 7 from the Beijing Municipal Market Regulation Administration to acquire Rizhao Steel Yingkou Medium Plate Co, Mysteel Global has learned.
In mid-July, Jingye had purchased 100% equity in the plate and longs maker from East China's Shandong based Rizhao Steel Holding Group Co (Rizhao Steel), with the deal opened for public comment from late July through early August.
Located in Northeast China's Liaoning province, Rizhao Steel Yingkou Medium Plate hosts a medium plate production capacity of 6 million tonnes/year and 2 million t/y of wire rod production capacity.
Before being fully acquired by Rizhao Steel, the company was known as Minmetals Yingkou Medium Plate. It was incorporated in June 2002 by China Minmetals Corporation (Minmetals), a top state-owned mining investment and metals trading company. Later, Rizhao Steel became its second largest shareholder with a 45.96% stake. Rizhao Steel subsequently acquired Minmetals' 54.03% stake in September 2021 to own the firm 100%.
Jingye has been busy in M&A activity of late. Before the purchase of Rizhao Steel Yingkou Medium Plate, in late June the company had taken full control of Lianyungang Xingxin Iron & Steel Co, a steelmaker based in East China's Jiangsu province whose annual production output of crude steel is at 3 million tonnes.
These purchases reflect Jingye's ambitious development plans, eyeing M&A targets in south and north of the country at the same time, industry sources noted, adding that the steps also show that the current pace of consolidation and reorganization in China's steel industry is accelerating.
Source:Mysteel Global
