Shougang to restructure Tonghua Iron and Steel
The China’s leading steel enterprise Shougang Group signed a restructuring agreement with Tonghua Iron and Steel Group in Changchun city recently, which allows the Shougang Group to hold a 77.6 percent share after completion.
It is reported that Shougang invested 2.5 billion yuan cash to increase the capital of the Tonghua Iron and Steel Group, which was held by the State-owned Assets Supervision and Administration Commission of Jilin province.
The Tonghua Iron and Steel Group is currently the largest steel enterprise in Jilin province.
After the restructuring, the Shougang Group will bring the production, operation and project construction of the Tonghua Group into its own management system, which will lead to double sales income by the end of the Twelfth Five-Year Plan by means of various measures such as upgrading technology, readjusting the product mix, extending the industry chain and diversifying business.
