Guangdong Iron & Steel Group Corporation Is Officially Established

In the afternoon of June 28, Guangdong Iron & Steel Group Corporation jointly invested by Baosteel Group Corporation, State-owned Assets Supervision and Administration Commission (SASAC) of Guangdong Province and SASAC of Guangzhou City was unveiled officially, marking an interim achievement accomplished for the assets restructuring of Baosteel Group, Shaoguan Iron & Steel Group (SGIS) and Guangzhou Iron & Steel Enterprises Group (GISE), which is a powerful impetus to Zhanjiang Iron & Steel Base Project and will effect a profound impact on merger and restructuring of domestic iron & steel enterprises, optimization of iron & steel industrial layout and drive of the structural adjustment of steel industry.

Member of Political Bureau of the CPC Central Committee and Party Secretary of CPC Guangdong Provincial Committee Wang Yang, Deputy Party Secretary of CPC Guangdong Provincial Committee and Governor of Guangdong Province Huang Huahua, Vice Chairman of SASAC under State Council Jin yang, Chairman of Baosteel Group Corporation Xu Lejiang jointly unveiled Guangdong Iron & Steel Group Corporation.

The ceremony was chaired by standing member of CPC committee and Vice Governor of Guangdong Province Huang Longyun. Vice Chairman of National Development and Reform Commission Zhang Guobao sent a message of congratulation. President of Baosteel Group Corporation He Wenbo, Chairman of SASAC of Guangdong Province Liu Fucai and Chairman of SASAC of Guangzhou City Zhang Lianguang signed the joint venture contract for Guangdong Iron & Steel Group Corporation on behalf of the three parties.

NDRC issued a document on March 17 to approve the Development & Reform Commission of Guangdong Province and Baosteel to carry out the preparatory work of Guangdong Zhanjiang Iron & Steel Base Project, and Baosteel will build a 10 million ton steel base in Zhanjiang on the basis of merging and restructuring SGIS and GISE, the existing steel enterprises in Guangdong Province, to eliminate the outdated capacity.

In line with the spirit of the document, SASAC of Guangdong Province, SASAC of Guangzhou City and Baosteel Group Corporation agreed to make joint investment to establish Guangdong Iron & Steel Group Corporation and drive Zhanjiang Iron & Steel Base Project.

The new Guangdong Iron & Steel Group Corporation will be registered in Guangzhou City with a capital of RMB 35.86 billion yuan, for which Baosteel Group Corporation will contribute in cash and hold 80% shares; SASAC of Guangdong Province and SASAC of Guangzhou City will contribute with the net state-owned assets of SGIS and GISE and hold 20% shares collectively.

The corporation will be in charge of steering and driving the development of steel industry in Guangdong Province by undertaking the functions of industrial planning, decision-making, instruction and coordination, and construct Zhanjiang Iron & Steel Base Project. It will implement the premium steel product strategy, independent innovation strategy, green energy saving strategy and internationalization strategy in order to build a world-class, green and environmental protection base for iron & steel production, R&D base for steel product application technologies, environmental protection and energy saving technologies, to create the maximum value for shareholders.