HBIS Group and Tangshan sign relocation agreement to transfer over 7 million tons capacity to seaside of Laoting
2020-08-24 14:03:34 [Print]
On the evening of August 20, HBIS Company Limited, a listed company of HBIS Group, the state-owned steel enterprise in Hebei, announced that based on the decision and work deployment plan for relocation from city made by Tangshan and Hebei, HBIS Company Limited Tangshan Branch (hereafter Tangshan Branch) will remove all of its capacity in the city of Tangshan from 2016 to 2020. The capacity will be reduced and transferred to the seaside area of Tangshan and coordinated with HBIS Group Laoting iron and steel project for implementation. On August 19, HBIS Group and the government of Tangshan signed a relocation agreement for shutdown and compensation.
It is said that Tangshan Branch has iron-making capacity of 7.04 million tons, steel-making capacity of 6.84 million tons and steel-rolling capacity of 11 million tons. HBIS Company Limited stated that the relocation of Tangshan Branch from city will lead to shutdown of all assets except a cold-rolling plant and part of other assets.
Tangshan Branch is one of the core assets of HBIS Company Limited. The shutdown of Tangshan Branch will cause losses to HBIS Group. Based on the evaluation of total shutdown of Tangshan Branch in late August, it is expected that HBIS Company Limited would see the output reduction of 1.82 million tons pig iron, 1.74 million tons of steel and 1.67 million tons of steel products.
However, HBIS Company Limited acquired HBIS Group Laoting Iron and Steel Co., Ltd. (hereafter HBIS Group Laoting) as a wholly-owned subsidiary this April. The acquisition increased pig iron capacity of 7.32 million tons, steel capacity of 7.47 million tons and steel products capacity of 7.10 million tons for HBIS Company Limited.
HBIS Company Limited claimed that HBIS Group Laoting will start production successively in September 2020 and is expected to produce 1.55 million tons of pig iron, 1.48 million tons of steel and 1.42 million tons of steel products by the end of 2020.
It is said that Tangshan Branch has iron-making capacity of 7.04 million tons, steel-making capacity of 6.84 million tons and steel-rolling capacity of 11 million tons. HBIS Company Limited stated that the relocation of Tangshan Branch from city will lead to shutdown of all assets except a cold-rolling plant and part of other assets.
Tangshan Branch is one of the core assets of HBIS Company Limited. The shutdown of Tangshan Branch will cause losses to HBIS Group. Based on the evaluation of total shutdown of Tangshan Branch in late August, it is expected that HBIS Company Limited would see the output reduction of 1.82 million tons pig iron, 1.74 million tons of steel and 1.67 million tons of steel products.
However, HBIS Company Limited acquired HBIS Group Laoting Iron and Steel Co., Ltd. (hereafter HBIS Group Laoting) as a wholly-owned subsidiary this April. The acquisition increased pig iron capacity of 7.32 million tons, steel capacity of 7.47 million tons and steel products capacity of 7.10 million tons for HBIS Company Limited.
HBIS Company Limited claimed that HBIS Group Laoting will start production successively in September 2020 and is expected to produce 1.55 million tons of pig iron, 1.48 million tons of steel and 1.42 million tons of steel products by the end of 2020.
