Chongqing Iron and Steel plans to set up a joint venture with Baosteel Resources to provide professional mixed ore processing services.

Published: Dec 23, 2021 16:33
Chongqing Iron and Steel Co., Ltd. (hereinafter referred to as "Chongqing Iron and Steel") announced on December 22nd that according to the needs of business development, the company plans to jointly fund a joint venture company with Baosteel Resources Holdings (Shanghai) Co., Ltd. (hereinafter referred to as "Baosteel Resources"). The registered capital is proposed to be 180 million yuan. Among them, Chongqing Iron and Steel holds 19% of the shares and Baosteel Resources holds 81% of the shares. After the establishment of the joint venture, the iron ore blending processing business will be carried out in Majishan.

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Chongqing Iron and Steel Co., Ltd. (hereinafter referred to as "Chongqing Iron and Steel") announced on December 22nd that according to the needs of business development, the company plans to jointly fund a joint venture with Baosteel Resources Holdings (Shanghai) Co., Ltd. (hereinafter referred to as "Baosteel Resources"), with a registered capital of RMB 180 million. Among them, Chongqing Iron and Steel holds 19% of the shares and Baosteel Resources holds 81% of the shares.

The funded joint venture company is named Baowu Jingcheng (Zhoushan) Mining Technology Co., Ltd. (hereinafter referred to as "the joint venture company"). After the establishment of the joint venture company, the iron ore blending processing business will be carried out in Majishan.

The announcement said that Chongqing Iron and Steel and Baosteel Resources are both controlled by China Baowu Iron and Steel Group Co., Ltd., and are related legal persons, so this investment constitutes a related party transaction. however, it does not constitute a major asset restructuring as stipulated in the measures for the Management of Major Asset reorganization of listed companies.

After the establishment of the joint venture company, it will provide professional mixed ore processing services, with an estimated mixed ore production capacity of 20 million tons / year, which can reduce the pressure on environmental protection, ensure material supply, optimize logistics and focus on the main industry. in line with the company's future development planning requirements. At the same time, the announcement said that the establishment of the joint venture is conducive to the sustainable development of the company, will not adversely affect the financial and operating conditions of the company, and does not harm the interests of the company and its shareholders.

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