History of Shagang Group
Shagang Group, a Chinese national industrial enterprise, is headquartered in Zhangjiagang City, Jiangsu Province, China. In 2016, Shagang Group produced ~33 million tonnes of liquid steel, ranking it the 6th largest steelmaker in the world.
The timeline below covers the history of the firm.
- 1975: Jiangsu Shagang Group Co incorporated in 1975.
- 2001: Acquisition of Thyssen Dortmund works for Euro 30m.
- 2006: Buys 90.5% of Jiangsu Huai Steel for 2 bn yuan.
- 2007: Shagang acquires 80% of Yongxing Steel Company Ltd.
- 2007: Shagang purchases 25% of Jiangsu Yonggang Group Co.
- 2007: Shagang takes control of Xinrui Special Steel Co Ltd.
- 2007: Acquires 90% stake in Australian Bulk Minerals (ABM).
- 2008: Shagang fails in bid to acquire Namisa iron ore stake in Brazil.
- 2009: Talk of Shagang's desire for overseas listing/strategic partner.
- 2012: Shagang ranks first in China's list of top non-state 500 firms.
- 2012: Talk of link-up with Baosteel to create 80 mt/yr giant.
- 2012: Signs agreement for merger with scrap supplier Fengli Group.
- 2013: Shagang sets up new international headquarters in Singapore.
- 2014: Plans issue of short term financing bond worth CNY 2 billion.
- 2015: Sell 55% stake in Shenzhen-listed Jiangsu Shagang Group Co.
- 2016: Shagang commissions first Castrip® production facility in China.
- 2018: Jiangsu Shagang ordered to review environmental performance.
- 2001: Upon acquisition of the Westfalenhütten Works from ThyssenKrupp, Shagang shipped the main plant and equipment to China where it was reassembled and resumed steelmaking operations in 2004.
The main plant and equipment shipped from Germany to China included a sinter plant, blast furnaces, steelmaking facilities, continuous casting machines and a hot strip mill.
- 2007: ABM is thought to have proven reserves of ~283 million tons or iron ore. The plan is for ABM to produce 2 million tons of ore annually for Shagang. [China's iron ore reserves are extremely limited, and generally not high iron content - making this a strategic acquisition].
- 2008: Trading firm Itochu of Japan in consortium with five Japanese steel producers [JFE Steel, Nippon Steel, Sumitomo Metal Industries, Kobe Steel and Nisshin Steel] and POSCO from Korea acquired the 40% stake share in Brazilian iron ore miner Nacional Minerios S.A. (NAMISA).
- 2009: Chinese government controls on private enterprises' fund-raising activities considered by many observers to limit Shagang's growth potential.
- 2012: Jiangsu-based Fengli Group is a leading Chinese scrap and iron ore trader.
- 2013: New Singapore HQ is intended to help internationalize the business and increase Shagang's steel exports to 20 percent of the company's total output, in response to the 2012 market slowdown.
- 2014: Bond to be issued on May 2014 by China Citic Bank.
- 2015: Analysts at the time suggested that the sale of Shagang's stake in the Jiangsu Shagang Group was to raise funds for the company's diversification away from steel.
- Castrip LLC announced in August 2016 that it had signed a licensing agreement for Shagang Group to use the Castrip® process in conjunction with existing steelmaking furnaces to displace less energy-efficient casting and rolling mill facilities.
- In 2017, Shagang was found to have dumped millions of tonnes of untreated waste, including slag from steel production, in landfills near the banks of the Yangtze river, contaminating nearby soil and water.
- 2018: This order from the Chinese authorities to review environmental performance was not just confined to Shagang.
16 other companies including production plants at the China Baowu Group and at HBIS Group were also given a set time to address substandard environmental and health & safety performance.
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