Hebei Group inks deal to hike steel output

BEIJING (Commodity Online) : China’s largest steel maker by output, Hebei Iron and Steel Group, announced that it has inked restructuring agreements with seven private-owned iron and steel enterprises in order to consolidate the business and expand its output capacity, sources reported.

The seven firms are Jiujiang Wire Co Ltd, Yanshan Iron & Steel Co Ltd, Rongxin Group Co Ltd, Xinda Iron & Steel Group Co Ltd, Xinjin Iron & Steel Co Ltd, Yuhua Steel Co Ltd and Jinding Heavy Industry Co Ltd. The company will hold a 10% stake in each of the above-mentioned companies after the restructuring.

Upon the completion of restructuring, Hebei Iron and Steel will see its iron and steel production capacity increase by 13 million tons to more than 60 million tons in total.

On Nov. 11, 2010, the company inked alliance agreements with five private-owned iron and steel enterprises, Hebei Jingye Group, Hebei Yongyang Co, Hebei Jitai Special Steel Group, Tangshan SongTing and Xingtailonghai Iron & Steel Group Co.