Chongqing Iron and Steel Co., Ltd. announced on December 22 that the company plans to jointly fund and establish a joint venture with Baosteel Resources Co., Ltd., with a planned registered capital of 180 million yuan.
Both shareholders make capital contributions in currency. Chongqing Iron and Steel holds 19% of the shares and contributes 34.2 million yuan, and Baosteel Resources holds 81% of the shares and contributes 145.8 million yuan.
The name of the joint venture company that the two parties intend to jointly fund and establish is Baowu Jingcheng (Zhoushan) Mining Technology Co., Ltd. After the establishment of the JV, it will carry out iron ore blending and processing business in Majishan in Zhejiang province.
The two companies are both controlled by China Baowu Steel Group. Therefore, this investment constitutes a related transaction, but not belongs to a major asset reorganization as required by the Measures for the Management of Major Asset Reorganizations of Listed Companies.
(Writing by Emma Yang Editing by Tammy Yang)
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