SHANGHAI, March 2 Kailuan Group, one of
China's major coal producers, has taken a more than 30-percent
stake in a joint venture steel project in north China, the 21st
Century Business Herald reported on Friday, citing an official
with the JV's partner Shougang.
Shougang, China's sixth-largest steelmaker, has increased
its stake in Shougang Jingtang Iron & Steel to 70 percent from
the previous 51 percent, the paper said, citing chairman Zhu
After being ordered to leave Beijing as part of efforts to
improve the capital's air quality in 2008, Shougang set up the
joint venture with Tangshan Steel to run a greenfield Caofeidian
steel project in neighbouring Hebei province, China's largest
Zhu said in March last year that Tangshan Steel would
withdraw its 49-percent stake from Shougang Jingtang.
A spokesman with Shougang Jingtang Iron & Steel declined to
comment, while a spokeswoman with Shougang Group could not be
The project, with an annual capacity of 9.7 million tonnes,
is also in line with China's plans to move as much as 40 percent
of total steel capacity to a series of new coastal bases in the
next five years in order to keep down the transport costs of
imported iron ore and improve the environment.
(Reporting by Ruby Lian and Jacqueline Wong)