Hebei Steel Continues Merger Plan

Hebei Steel entered into agreements on December 31 to acquire 10 percent of shares in each of seven private steel mills in a phase-in manner the group had employed to merge with five other steelmakers a month earlier. These new producers are Jiujiang Wire rod, Yanshan Steel, Rongxin Steel, Xinda Steel, Xinjin Steel, Yuhua Steel and Jinding Heavy Industry, all located in the Qian'an region. Instead of capital injection, Hebei Steel will provide its new members with business creditworthiness, management skills, technical consulting services and marketing channels. The deal will intensify the group's position as the country's No.1 steelmaker by output. As of the end of 2009, Hebei Steel Group's annual output topped 40.24 million tons.