Anshan Iron and Steel Group Co, (Angang) has received formal approval from the Chinese Ministry of Industry and Information Technology (MIIT) to take over the Sangang Group.
This is the latest move in Angang’s operational restructuring, which is expected to step up economic construction across the Taiwan Straits and further upgrade the iron and steel sector in Fujian province. Sangang Group is the state-owned parent of the Shenzhen-listed Sangang Minguang.
Fujian province, home to Sangang Group, has been a province with a net import of steel products. Sangang is the largest one of its kind in the province with products meeting ready demands.
Market insiders are therefore generally bullish for this ‘marriage.’
Back in 2006, Angang and Fujian provincial governments reached framework agreement which allows Angang to build a steelworks of 5Mt/y along the coast of Fujian, as well as to take over Sangang Group.
The agreement, however, was soured in the next year, followed by another five years of hand twist between the two.
Source China Metals