BEIJING, July 26 -- Chinese steelmaker Anshan Iron & Steel Group Corp. said Friday that it has signed a cooperation framework agreement with Jilin Horoc Nonferrous Metal Group Co. to secure nickel resources.
The two companies will deepen ties in the areas of capital, raw materials and information, Anshan said, without elaborating.
The deal comes after the Liaoning-based steelmaker purchased a 1.2% stake in Horoc's listed unit, Jilin Jien Nickel Industry Co. (600432.SH), earlier this month for CNY157 million, becoming the third largest shareholder in the listed company.
Horoc is the largest nonferrous metal producer in the northeast Jilin province. Nickel is an essential raw material in the production of special and stainless steel.
Anshan Iron's latest move is part of a plan to expand into the areas of special steel and stainless steel.
Earlier this year it acquired Pangang Group Co., whose main products include rail steel, a kind of special steel, Anshan said in a statement on its website.
Securing low-cost raw materials has become a strategic focus for the company, it added.