Major Chinese steelmaker Baosteel announced that it plans to invest RMB 213 million ($30 million) to acquire 47.8 percent equity in Hubei Province-based Hubei Sentai Metallurgy Co. Ltd., a subsidiary of Wuhan Iron and Steel Group. Meanwhile, Baosteel will invest a further RMB 504 million ($71 million) of capital in Hubei Sentai, with Baosteel’s total capital investment amounting to 717 million ($101 million).
Baosteel said the move is aimed at meeting Baosteel’s demand for ferrosilicon raw material supply, to ensure cost control, and to enhance the competitive advantages of the company's strategic silicon steel products.