Hubei Province-based Chinese steelmaker Hubei Xinyegang Steel Co., Ltd., a subsidiary of CITIC Group, has completed a capital increase of RMB 13.58 billion ($2.0 billion) in Nanjing Iron and Steel Group (Nangang Group), and thereby holds 55.2482 percent equity and becomes the controlling shareholder in Nangang Group, as announced by Nanjing Iron and Steel Co., Ltd (Nanjing Steel). At the same time, Nangang Group has completed the industrial and commercial change registration procedures and holds 100 percent equity in Nangang Iron and Steel Union Co., Ltd. Accordingly, Nangang Group indirectly holds 59.1 percent equity in Nanjing Steel, and becomes its indirect controlling shareholder. The actual controller of Nangjing Steel becomes CITIC Group.
In the January-September period this year, Nanjing Steel registered an operating revenue of RMB 56.365 billion, up 7.07 percent year on year, while it achieved a net profit of RMB 1.665 billion, down 19.83 percent year on year.
In the first nine months this year, CITIC Pacific Special Steel posted an operating revenue of RMB 86.414 billion, up 14.44 percent year on year, while it achieved a net profit of RMB 4.374 billion, down 21.09 percent year on year.
Previously, CITIC Special Steel has had four quality special steel production bases, including Jiangsu Province-based Jiangyin Xingcheng Special Steel, Hubei Province-based Daye Special Steel, Shandong Province-based Qingdao Special Steel and Jiangsu Province-based Jingjiang Special Steel.
The addition of Nanjing Steel will increase CITIC’s special steel capacity to more than 30 million mt annually, which will consolidate its leading position in the special steel industry, while the move will improve Nanjing Steel’s profitability at the same time.