LONDON Chinese steel
producer Tangshan Iron & Steel Co. Ltd. has agreed to buy a
10-percent stake in Duferco International Trading Holding SA, a
spokeswoman for the trader confirmed March 27 to AMM
sister publication Steel First.
The deal between Duferco and
Tangshan, a subsidiary of the worlds second-largest steel
producer, Hebei Iron & Steel (Group) Co. Ltd., includes
agreements on the marketing of steel products, the sourcing of
raw materials and technical support for plants.
Duferco has customers in Europe
as well as in North and South America, so the tie-up is
expected to expand Tangshans geographical network and
potential for exports.
The Lugano, Switzerland-based
trader said that of the 8 million tonnes of steel it sold last
year, some 2.2 million tonnesabout 27.5 percentwere
distributed to 28,000 customers in Europe and the Americas.
Tangshan Steel has a production
capacity of more than 18 million tonnes per year.
Industry analysts estimated earlier this month that China
has at least 900 million tonnes of crude steel production
capacity, while its official output in 2012 was just 716
million tonnes (
amm.com, March 12), making a foothold in export
markets a key development for Chinese mills.
A version of this article
was first published by AMM sister publication Steel