On August 20, Liaoning Province-based Chinese steelmaker Lingyuan Iron and Steel Co. announced that it has received two subsidies worth RMB 480 million ($75.8 million) from the local government.
The first government subsidy worth RMB 150 million ($23.7 million) will be used for energy saving and emission reducing project of the company, while the second subsidy of RMB 330 million ($ 52.1 million) will finance the technology development. The local government offered support for the company’s operation amid the sluggishness of the steel market.
According to the company’s financial report for the first half of this year, Lingyuan Steel achieved an operating revenue of RMB 6.606 billion ($1.04 billion), down 13.29 percent year on year. Meanwhile, it recorded a net loss of RMB 232 million ($36.6 million) for the given period, as compared to a net profit of RMB 262 million ($41.3 million) in the first half of 2011.