Xining Special Steel acquires waste treatment firm
Shanghai. October 19. INTERFAX-CHINA - Xining Special Steel Co. Ltd., a leading special steel producer in China, has agreed to acquire a waste treatment firm in a bid to cut costs, the company announced Oct. 19.
The steelmaker has signed an equity transfer agreement giving it ownership of Qinghai Zhengwei Industrial Group Co. Ltd. for a total consideration of RMB 47.77 million ($7.49 million).
The acquisition will help Xining Special Steel meet rising needs for waste treatment as it presses ahead with plans to expand production capacity over the next two years, the firm said.
Both companies are based in Qinghai's provincial capital of Xining. Zhengwei Industrial has provided waste treatment services for the steel smelter since 2004.
The target's net assets stood at RMB 87.49 million ($13.71 million) at the end of 2010, and it reported net profit of RMB 18.61 million ($2.92 million) for the year out of sales revenue of RMB 979.91 million ($153.55 million).
- MS
