History of Shougang Steel
In 2018, Shougang Steel was the 10th largest steelmaker in the world with crude steel production of over 27 million tonnes.
The timeline below covers the history of the firm.
- 1919: The firm was established as Shijingshan Steel.
- 1992: Acquires open pit iron ore mine in Southern Peru.
- 2005: Shougang Group commences relocation to Caofeidian.
- 2008: Australia blocks mining sale to China's Shougang.
- 2009: Shijingshan Steel in Beijing ceases production.
- 2010: Shougang Jingtang recommences iron and steel production.
- 2010: Press rumours about planned acquisition of Tonghua Iron & Steel.
- 2015: Commences 9mt/year expansion of crude steel capacity costing $7bn.
- 2016: Announcement puts Hesteel mega-merger rumour to rest.
- 2019: Transfers 15% of its shares to Baowu Steel.
- The Shougang Group Co Ltd was also known as Capital Steel.
- 1992: The Peruvian subsidiary, Shougang Hierro Peru, operated the Marcona Mine in Peru's Marcona District.
- 2005: Shougang, an 8mt / year producer of mainly hot-rolled strips, rebar, and hot-rolled and cold-rolled coils, initiated its relocation from Shijingshan to Caofeidian Port in order to reduce air pollution in advance of the Beijing Olympics in 2008.
The move involved a shift of over 8 mt / year of steel production capacity. 'Relocation' was something of a misnomer according to some obervers however, since much older plant was permanently closed down and replaced with new equipment. The newly-commissioned plant, named Shougang Jingtang, commenced operation in 2010.
- 2008: Australian securities regulators blocked Shougang from acquiring a 20 percent stake in Mount Gibson Iron from a Russian billionaire.
Shougang's Hong Kong-listed subsidiary, Shougang Concord International Enterprises Co Ltd had agreed to buy a ~20 percent of the Australian mining firm from Gazmetall, a steel firm in Russia owned by billionaire oligarch Alisher Usmanov.
Mount Gibson indicated that the sale had to be blocked because Shougang had not informed it that it planned to launch a takeover, as required under Australia takeover rules.
- 2010: The 2010 press reports indicated that Beijing Shougang Steel planned to purchase a controlling stake in Tonghua Steel, a major steelmaker in Northeast China's Jilin Province.
The year before, Tonghua Steel had apparently planned to be acquired by Beijing Jianlong Heavy Machinery Group.
- 2015: The major capacity increase was considered to be Shougang's second phase of development.
The capacity expansion, taking the company's crude steel capacity from 9.7 mt/yr to over 19 mt/year, was expected to be complete by end-2018.
- 2016: In a filing to the Shenzhen Stock Exchange on Wednesday September 28, Shougang announced that a merger plan had been terminated - as conditions for its implementation were not in place.
This announcement put to rest speculation that had commenced the previous month that Shougang and Hesteel (formerly known as Hebei Iron & Steel) were working towards a merger.
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