Baosteel may buy stake in Lion Group
Source: Bloomberg News |
June 23, 2011, Thursday
|
Print Edition
Print Edition
BAOSTEEL Group Corp, China's second-biggest steel maker, is in talks to buy a stake in a steel unit of Malaysia's Lion Group for about US$1 billion, two people with knowledge of the matter said yesterday.
The size of the holding in Amsteel Mills Bhd to be sold has yet to be determined, one of the people said, declining to be identified because the negotiations are private.
Chinese steel mills, the world's biggest producers, need to target foreign markets to boost sales because of domestic oversupply. Malaysia's economy may expand 5 to 6 percent this year after growing 7.2 percent in 2010, its central bank estimates.
"Southeast Asian countries have a good projection of steel demand as economies grow and not much steel capacity," said Xu Xiangchun, chief analyst with researcher Mysteel.com.
Annual steel production capacity in Association of Southeast Asian Nations, may rise to 64 million tons by 2015 from 25 million tons in 2009, Xu said.
Amsteel operates two steel plants in Selangor, using electric arc furnaces and other facilities to make the alloy used in construction, automotive parts and machinery, according to Lion Group's website.
Baosteel, supplier of half the sheets used by car makers in China, will consider building plants in developing regions outside the country, Chairman Xu Lejiang said in March. The Chinese government is encouraging a shift of surplus steel production capacity overseas, Wuhan Iron and Steel Group's General Manager Deng Qilin said in the same month.
Steel demand in China, the world's biggest consumer of the alloy, may rise by as much as a quarter by 2015 compared with last year, according to a May projection from the China Iron and Steel Association, which represents producers.
The size of the holding in Amsteel Mills Bhd to be sold has yet to be determined, one of the people said, declining to be identified because the negotiations are private.
Chinese steel mills, the world's biggest producers, need to target foreign markets to boost sales because of domestic oversupply. Malaysia's economy may expand 5 to 6 percent this year after growing 7.2 percent in 2010, its central bank estimates.
"Southeast Asian countries have a good projection of steel demand as economies grow and not much steel capacity," said Xu Xiangchun, chief analyst with researcher Mysteel.com.
Annual steel production capacity in Association of Southeast Asian Nations, may rise to 64 million tons by 2015 from 25 million tons in 2009, Xu said.
Amsteel operates two steel plants in Selangor, using electric arc furnaces and other facilities to make the alloy used in construction, automotive parts and machinery, according to Lion Group's website.
Baosteel, supplier of half the sheets used by car makers in China, will consider building plants in developing regions outside the country, Chairman Xu Lejiang said in March. The Chinese government is encouraging a shift of surplus steel production capacity overseas, Wuhan Iron and Steel Group's General Manager Deng Qilin said in the same month.
Steel demand in China, the world's biggest consumer of the alloy, may rise by as much as a quarter by 2015 compared with last year, according to a May projection from the China Iron and Steel Association, which represents producers.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 娌狪CP璇侊細娌狪CP澶05050403鍙-1
- |
- 浜掕仈缃戞柊闂讳俊鎭湇鍔¤鍙瘉锛31120180004
- |
- 缃戠粶瑙嗗惉璁稿彲璇侊細0909346
- |
- 骞挎挱鐢佃鑺傜洰鍒朵綔璁稿彲璇侊細娌瓧绗354鍙
- |
- 澧炲肩數淇′笟鍔＄粡钀ヨ鍙瘉锛氭勃B2-20120012
Copyright 漏 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
