Baosteel withdraws from nickle joint venture

By Yang Xi
0 CommentsPrint E-mail China.org.cn, June 14, 2011
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Baosteel withdraws from nickle joint venture

宝钢退出中宝镍业中钢独撑

In 2009, Baosteel Group Corp, China's largest steel maker, and Sinosteel Corporation launched a ferronickel joint venture. Each of them contributed 600 million yuan ($US 92.6 million) to the deal, receiving 49 percent and 51 percent stakes in the new company.

But in 2010, only half a year after establishing the company, Baosteel transferred its stake in the joint venture to Sinosteel.

Now, the ferronickel firm, based in north China's Hebei Province, has reported a loss due to poor smelting technology and floating losses incurred importing raw materials, the 21st Century Business Herald reported.

Ferrynickle smelting technogies are different from steel making, and the technologies Sinosteel have used are not suitable, an insider from Baosteel said.

Another reason for Baosteel’s withdraw from the deal is that its partner did not guarantee a stable supply of nickle ore before the joint venture was set up. This mistake could wipe out investors if the firm fails to secure a reliable supplier, the insider said.

中宝镍业成立于2009年,是由中钢集团和宝钢集团共同出资组建的合资公司,中钢和宝钢各自出资6亿元,分别占股51%和49%。

不过,中宝注册仅半年,宝钢就选择了退出中宝镍业, 将49%股权悉数转给中钢。

据21世纪经济报道消息,由于冶炼技术引进不合理、进口的主要原料亏损,中宝镍业目前尚未投产就已亏损。

宝钢一位内部人称,“镍铁的冶炼工艺与钢铁不一样,中钢负责引进的冶炼技术存在诸多不合理的地方。”

另一个令宝钢决意退出的原因,是中钢尚未敲定红土镍矿的稳定来源,而镍铁生产在建设工厂之前必须落实红土镍矿的来源,否则之前的投资有可能血本无归。

China's business press carried the story above on Tuesday.

 
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