Metal Products News
- Panzhihua Steel mulls asset restructuring
Date: 14-Aug-2007 Sources: (Shenzhen Daily)
PANZHIHUA Iron and Steel Group, the country's 15th-largest steel mill by output, plans to reorganize the assets of its mainland-listed subsidiaries, an official at one of the units said yesterday.
Shares in Panzhihua's listed firms - Chongqing Titanium, Sichuan Changcheng Special Steel and PZH Steel - were suspended from trading yesterday pending an announcement of 'important issues,'the subsidiaries said in separate statements. No details were given.
'The parent company will discuss with the listed arms a restructuring of the group's production assets,'said Xiang Yuanping, board secretary of Chongqing Titanium.
But Xiang declined to say whether the parent company would inject assets, including its crude steel operations, into the listed units.
The Central Government is trying to create internationally competitive giants through mergers and acquisitions. The parents of Baosteel, the country's top steelmaker, and Wuhan Steel have recently acquired smaller domestic rivals.
But analysts have said the shake-up in China's steel industry, the world's largest, has been slowed by local governments' reluctance to lose their largest employers and taxpayers.
Panzhihua Iron and Steel, which has already absorbed some smaller mills in China's southwestern Sichuan Province, produced 6.77 million tons of crude steel in 2006, according to official data.
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