History of Shougang Steel - Beijing China.

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History of Shougang Steel

In 2021, Shougang Steel was the ninth largest steelmaker in the world with crude steel production of over 35 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.
  • 2011: Launched $574m integrated steel mill jv in Malaysia.
  • 2010: Press rumours about planned acquisition of Tonghua Iron & Steel.
  • 2015: Commences 9mt/year expansion of crude steel capacity costing $7bn.
  • 2015: Purchases 51% stake in Jingtang Iron & Steel (Jingtang).
  • 2016: Announcement puts Hesteel mega-merger rumour to rest.
  • 2017: Commences production of high strength automobile galvanized sheet.
  • 2019: Transfers 15% of its shares to Baowu Steel.
  • 2020: Announces purchase of 19.2% holding in Beijing Jingtang I&S for ~$820m.
  • 2021: Announces purchase of 49% stake in Shougang Steel Trade Investment Management Co Ltd.

  • 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.
  • 2011: Malaysian joint venture project - called Eastern Steel - was with local steel maker Hiap Teck Venture Berhad. It centred on construction of a greenfield steel slab plant to be built on a 1,200-acre site in Kemaman.
  • 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.
  • 2020: Jingtang ownership at the time of this purchase included the Beijing Capital Investment Holdings Co Ltd, as well as the Beijing Jing Guorui State-owned Enterprise Reform and Development Fund. On completion of this and other purchase transactions, Beijing Shougang held a 70.18% ownership stake in Shougang Jingtang United Iron & Steel.
  • 2021: The Beijing Shougang Steel Trade Investment Management Co Ltd mainly engages in the sale, processing, and distribution of steel products.

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