Xinhua News Agency, Shanghai, December 28(Reporter Wang Chenyang, Li Rong) reporter learned from China Baowu Iron and Steel Group that the company and the people of Shandong Province signed a cooperation framework agreement and related investment agreements on the 28th, and China Baowu Strategic Investment Shandong Iron and Steel Group.
Through this strategic investment, China Baowu will hold 49% of the equity of Shandong Iron and Steel Group, and Baosteel will hold 48% of Shandong Iron and Steel Rizhao6139% equity. After the completion of the cooperation, China Baowu will give full play to its advantages in management, technology, talent and brand, and with the help of Shandong Province's unique location, resources and industrial advantages, it will work with Shandong Province to strengthen and improve Shandong Iron and Steel Group, enhance its core competitiveness, realize the agglomeration and optimal allocation of industrial factor resources, and help Shandong deepen the transformation of new and old kinetic energy.
This cooperation is an important measure for China Baowu and Baosteel Co., Ltd. to improve the strategic layout of "bending the bow and arrow" along the Yangtze River and coastal areas, enhance the industrial leading ability of the northern coastal region, unswervingly strengthen and optimize the steel industry, realize the strong alliance of high-quality steel bases, release regional synergies, and better play the role of scientific and technological innovation, industrial control and safety support. At the same time, China Baowu will bring together more enterprise factor resources to efficiently promote the construction of a new low-carbon metallurgical modern industrial chain.
China Baowu's steel output in 2022 reached 1300 million tons, ranking 44th in the Fortune Global 500 list announced in 2023, ranking first among global steel companies. With an annual steel production capacity of more than 20 million tons, Shandong Iron and Steel Group is a super-large steel conglomerate that has completed ultra-low emission transformation in the whole region. Located in Rizhao City, Shandong Province, Shandong Iron and Steel Rizhao has the advantage of a deep-water port and is a large-scale coastal steel base.