Shanghai-based Chinese steel giant Baoshan Iron and Steel Co. Ltd (Baosteel) has announced that it will sell its loss-making stainless steel and special steel assets to its parent company Baosteel Group.
The overall value of the planned asset sale is estimated at RMB 45.193 ($7.182 billion), including RMB 28.221 billion ($4.484 billion) for stainless steel assets and RMB 16.972 billion ($2.697 billion) for special steel assets.
Among the various assets earmarked for sale are Baosteel's 54 percent stake in Ningbo Baoxin Stainless Steel, its 40 percent stake in Shanghal STAL Precision Stainless Steel and its 20 percent stake in Rihong Stainless Steel.
Baosteel said that its annual finished steel output would decrease from 26 million mt to 22 million mt due to the planned asset sale, and that it would focus on building its carbon steel business.