Chinese steelmaker Chongqing Iron and Steel Group has announced that in 2012 it plans to acquire all outstanding shares in Chongqing Steel Group Iron Company, to build a new steelmaking base in Jiangjin, and to establish a new terminal at Taizhou port, with a total overall investment of RMB 2.2 billion ($346 million).
As reported in the company's statement, Chongqing Steel's buyout offer for Chongqing Steel Group Iron Company will be RMB 185.756 million ($29.25 million) at most. As of December 31 2010, Chongqing Steel Group Iron Company's total assets were valued at RMB 305.52 million ($48.11 million). In 2010, its net profit hit RMB 5.12 million ($806,000).
In addition, Chongqing Steel will invest RMB 1.046 billion ($164.72 million) in total to construct a new steelmaking base in Jiangjin Zone, Chongqing. The project includes a coking furnace, a sintering machine, a blast furnace and other related equipment, with a targeted annual output capacity of 660,000 mt of molten iron.
Furthermore, Chongqing Steel also plans to establish a new terminal at Taizhou Port in Chongqing, which will be managed by its subsidiary Sanfeng Jingjiang Port Logistics, with a total investment of RMB 989.92 million ($155.89 million). The designed annual throughput of the terminal will be 9 million mt