Anyang Iron & Steel, the largest steel mill in Henan province, announced on Sunday that it had bought a stake in three local private iron and steel companies.
In the restructuring deal, Anyang Iron & Steel will acquire a 10 percent stake in each company. In exchange, Anyang will provide management expertise, technology, informational exchange and purchasing and marketing channels to each of its new partners.
By the end of last year, the total steel production capacity of the three private companies has reached more than 5 million tons, and profits totaled more than 166 million yuan ($25.6 million).
According to company officials, the restructuring is necessary to facilitate Anyang s long-term growth and help local steel companies avoid hostile takeovers by other firms.
"The company is considering further restructuring plans," Wang Ziliang, chairman of Anyang Iron & Steel, told China Business News.
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China's business press carried the story above on Monday.
