Two vie for shares in Meimian Steel

China's non-state-owned General Steel has reached a framework agreement with Meimian Steel, a wholly-owned subsidiary of Meimian Energy, to purchase 55 percent of the Taiyuan-based steelmaker for $64.70 million in cash, virtually leaving Tisco, another competitor for a stake in Meimian, as an outsider in the race. But officials at Tisco told the media negotiations that started as early as March 2009 on Tisco's acquisition of Meimian are still under way. Founded in 2003, Meimian Steel now operates two blast furnaces each with a capacity of five million tons. The company produces 1.2 million tons of crude steel, one million tons of pig iron, 600,000 tons of high-speed wire rod and 900,000 tons of round bar.