General Steel acquires Yantai Steel
General Steel Holdings, Inc., a non-state owned
steel products producer in China, has signed a letter
of intent to acquire 80 percent of Yantai Steel
Upon completion of the proposed acquisition, Yantai
Steel Pipe will become a Chinese-foreign joint venture,
for which General Steel will have 80 percent ownership
interest and Laiwu Iron & Steel Group will have
20 percent ownership interest.
The joint venture will preserve the existing systems
of Yantai Steel Pipe and build a new production
line for hot rolling seamless pipe. The production
capacity of the joint venture is designed to be
500,000 to 600,000 tons annually. The main products
of the joint venture include oil pipe, boiler pipe,
hydraulic pipe and those used in mechanical structures.
Yantai Lubao Steel Pipe Co., Ltd, a subsidiary of
Yantai Steel Pipe, is owned 20.18 percent by Yantai
Steel Pipe and 79.82 percent by Baosteel Group Corporation.