Ansteel to acquire 60 percent stake in Guangzhou stainless steel plant

China's steel company Ansteel plans to acquire about 60 percent of the stainless steel mill of the private-owned E United Group, based in Guangzhou. At the same time, the E United Group, founded by a Taiwan firm, not only concentrates on commodities and steel, but also does business in real estate and healthcare.

Ansteel, one of the giants in the steel business, is taking action to acquire about 60 percent of the shares in Guangzhou Lianzhong stainless steel and structures project, a stainless steel corporation wholly owned by E United Group, according to industry sources. The deal will amount to approximately $ 15 million. If the deal between the companies goes through, experts foresee the creation of the largest joint project in the steel industry through the two countries of Taiwan and China, based on the value of the deal.

The Lianzhong steel mill was worth about $ 790 million when it started production in 2006. Gradually increasing its output to a maximum of two billion tons of stainless steel per year, it continues to improve its production, planning to be the third largest supplier of stainless steel products in China. According to the results of last year, the Lianzhong plant produced about 1.5 billion tons of stainless steel, providing a turnover of about 100 billion Taiwan dollars.