Chongqing Iron & Steel, a medium-sized Chinese steelmaker, is selling a cold-rolled sheet plant for 719.59 million yuan (HK$908.47 million) to ease financial pressure and replenish working capital, it said in a filing to the stock exchange on Tuesday morning.
The Land Reserve Centre in the Changshou Economic and Technological Development Zone is expected to pay a first instalment of 100 million yuan before the end of the year and the remainder by June next year.
Chongqing Iron & Steel spent 452 million yuan to build the plant, which includes a complete set of cold-rolling equipment disposed of by bankrupt US energy giant Enron. The plant entered production in 2005.
The company estimates it should realise a gain of about 303 million yuan on the sale, before tax and expenses.
“The disposal has no adverse impact on the normal production and operation of the company,” the statement said.
The company reported net loss widened 23 per cent year on year to 1.38 billion yuan in the first half as slower economic growth in China dented demand for steel.
Source: South China Morning Post
- metaljunction »
- Metal News
Metal News & Events
METALJUNCTION PUBLICATIONS
Coal Insights (English) Monthly
![Steel Insights](/assets/images/news/coal-insights.jpg)
Coal Insights is a ready reckoner for anyone associated with coal. This publication is aimed at tracking everything related to coal in India.
India Coal Market Watch(English) Monthly
![Steel Insights](/assets/images/news/ICMW_Jan09.gif)
ICMW is a one-stop source for all news, data and research pertaining to coal demand, consumption, stocks, spot- and long-term prices with respect to the Indian Market.
India Steel Market Watch (English) Monthly
![Steel Insights](/assets/images/news/ISMW.gif)
ISMW is a brand new high-end steel market report, covering all aspects of the steel industry in India.
Steel Insights(English) Monthly
![Steel Insights](/assets/images/news/SteelInsights.jpg)
Steel Insights delves into various facets of the domestic and global steel industry such as market fundamentals, raw material price trends, price forecasts etc.