Shagang takes over ST Zhangtong

China's largest private steelmaker Shagang has been approved by China Securities Regulatory Commission to purchase 74.84 percent of ST Zhangtong, a publicly traded firm in Zhangjiagang that had been running in huge deficit for three consecutive years until 2009. Once the deal is completed, Shagang will have a chance to take majority stakes in Huaigang Special Steel, a subsidiary of the debt-laden firm and a producer of spring steel, bearing steel, anchor steel, alloy pipe billet and auto steel in Huaian City. In 2009 Huaigang produced 2.87 million tons of steel, 2.67 million tons of steel products and 2.75 million tons of pig iron. The company is expected to generate revenues of 14 billion yuan this year.