Hebei Iron inks alliance with 12 steelmakers in 50 days
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Hebei Iron & Steel Group, one of China's largest steelmakers, has signed alliance agreements with 12 private iron and steelmakers in the past 50 days, Beijing Business Today reported Tuesday.
After forming an alliance with the first five private steelmakers last November, Hebei Iron & Steel inked alliance agreements with seven more steel companies to expand its production capacity. The seven companies are Jiujiang Wire Co., Yanshan Iron & Steel Co., Rongxin Iron & Steel, Xinda Iron & Steel Co., Xinjin Iron & Steel Co., Yuhua Iron & Steel Co., and Jinding Heavy Industry Co.
Hebei Iron & Steel Group will hold a 10 percent stake in each of these seven steelmakers after the consolidation. Instead of capital injection, the group acquired these stakes by providing intangible assets, which include business reputation, management and technical consulting services, and distribution and purchasing channels.
China's business press carried the story above on Tuesday. China.org.cn has not checked the stories and does not vouch for their accuracy.
