Delong's unit to sell production capacity for 400m yuan

STEEL manufacturer Delong Holdings on Monday said its unit Aoyu Steel plans to sell its pig iron production capacity of 1.08 million tonnes and steel production capacity of 1.21 million tonnes, for an aggregate consideration of 400 million yuan (S$81.1 million).

This follows plans by the Hebei province's 12th National People Congress to reduce steelmaking capacity in the province by 31.86 million tonnes in 2017, and to speed up steelmaking capacity reduction efforts in the cities of Langfang, Baoding and Zhangjiakou.