Jiangsu Province-based Chinese steelmaker Shagang Group has announced that it has signed a framework agreement for the purchase and restructuring of Jiangsu-based Chinese scrap and iron ore trader Fengli Group Co. The agreement was signed on August 3 in the city of Zhangjiangang, Jiangsu. Fengli Group is the largest scrap trader in China.
A senior official from Shagang Group stated that the framework agreement is just an agreement of intent, adding that the two sides have not yet confirmed a detailed purchase and restructuring plan.
Shen Wenrong, president of Shagang Group, commented, "Shagang's merger with Fengli Group is inexorable under the current circumstances."