Three major Chinese steelmakers, Jiangsu Delong, Nanjing Iron and Steel and Zhongtian Iron and Steel have united to restructure and save the five steel enterprises of Jiangsu province-based Shente Steel group which is undergoing bankruptcy reorganization.
Shente Steel group is an integrated steelmaker and engages mainly in the manufacture of bar and wire rods. Shente Steel has an installed capacity to produce 2.25mn mt of iron (550,000mt is under judicial auction), 2.7mn mt steel and 4.66mn mt hot-rolling capacity.
The five enterprises of Shente Steel that will be restructured are:
1. Jiangsu Shente Iron and Steel Company Limited – engages in CC of carbon structural steel, alloy steel.
2. Liyang Jianxin Iron Company Limited – engages in pig iron and cement raw materials manufacturing.
3. Liyang Changxing Company – engages in mixed ore and sinter project.
4. Liyang Shente Steel – engages in steel calendering, cold rolling, hot-rolled products.
5. Liyang Changxing Iron and Steel Facilities – engages in converter gas, coke oven gas and power medium production.
Earlier in July, another Chinese steelmaker Fangda Special Steel abandoned plans to acquire the assets of Shente Steel due to its debt crisis and complicated reforming procedures. Shente Steel went bankrupt after facing debt crisis from 2014 onwards due to difficult market conditions and management issues. In July, the local court of Liyang appointed restructuring investors for the company under the provisions of the Enterprise Bankruptcy Law of the People’s Republic of China.