On 20 June 2008, the company announced that Baosteel Group, its parent company, is engaged in discussions to establish a joint venture called Guangdong Iron & Steel Group Co., Ltd. with the State-owned Assets Supervision and Administration Commission (SAC) of Guangdong Province and Guangzhou City.

It was reported that Guangdong Iron & Steel Group will be based in Guangzhou City with registered capital of RMB 35.86 bln, of which Baosteel Group will invest RMB 28.69 bln in cash to hold an 80% stake and the SAC of Guangdong Province and Guangzhou City will invest RMB 7.12 bln by injecting state-owned assets of Guangdong Shaoguan Iron and Steel Group Co., Ltd. and Guangzhou Iron & Steel Group Co., Ltd.

On 17 March 2008, the ten million-ton per year iron and steel project in Zhanjiang Port of Baosteel Group was approved by the National Development and Reform Commission, following which, Baosteel Group plans to build Guangdong Iron & Steel Group to run the Zhanjiang Port project.


Source: Securities Times

Date: 24 Jun 2008

CN01/MZ/AR/KM