Bengang Steel Plate set to focus on carbon steel after asset swap
Bengang Steel Plate Co (BSPC), a Shenzhen-listed arm of Liaoning-based Benxi Iron & Steel Group, is planning an asset exchange with its parent, in a bid to focus on its carbon steel business.
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According to BSPC’s announcement on Tuesday December 3, it will exchange its 100% stake in Bengang Stainless Cold Rolling Dandong Co (Bengang Dandong) with the group’s 75% stake in Benxi Steel Posco. The parent will also pay BSPC a total of 52 million yuan ($8.5 million) in cash as part of the transaction.
Upon completion of the asset swap, BSPC will no longer be involved in the stainless steel business. It will focus on its most competitive carbon steel business to strengthen its market position, the company said.
Bengang Dandong was set up in 2010. Its 190,000-tpy stainless cold rolling plant is still under construction in Liaoning province’s Dandong city.
Benxi Steel Posco, a cold rolling joint venture between the Benxi group and South Korea’s Posco, was set up in 2004. Posco currently holds a 25% stake in the joint venture.