Baosteel to Control Desheng Nickel

Baosteel signed an agreement with Fujian Wugang Group on December 9 to merge with Fujian Desheng Nickel, whose nickel alloy and stainless hot rolled strip output is currently at 920,000 tons and 820,000 tons per annum respectively.

Desheng Nickel, a subsidiary of Wugang, has interests in a nickel mine (with a reserve of 150 million tons) in Philippine and runs a nickel joint venture in Indonesia. This is why Baosteel hopes to establish a partnership with the company. With easy access to nickel resources, the group may have a chance to reduce the production cost of nickel-based stainless steel.