Dec. 10 -- Baosteel Group Corp., China’s second- largest steelmaker, agreed to take over and restructure Desheng Nickel, a Fujian province-based nickel smelter and stainless steel producer.
Baosteel signed the agreement today in Beijing with Fujian Wuhang Stainless Steel Product Co., which owns Desheng, Baosteel said in a statement on its website, without giving a price for the transaction or the size of the stake it will take.
Shanghai-based Baosteel, also the country’s second-biggest stainless-steel maker, is seeking to secure alternative raw material supplies as nickel prices surged 48 percent over the past year. Desheng Nickel is able to make stainless steel from cheaper low-grade ore known as laterites, Baosteel said.
Desheng Nickel, founded in 2005, has an annual manufacturing capacity of 1 million metric tons of nickel alloy and 1.2 million tons of hot-rolled stainless steel coil, according to its website.