"Anshan Iron And Steel Co." Is About To Appear: Angang Panzhihua Iron And Steel Group Has Been Approved By The SASAC.

Yesterday, *ST vanadium titanium (000629), Anshan Iron and Steel shares (000898) (A shares, H shares) temporarily suspended. The reporter learned from *ST vanadium and titanium related personages that the reason for the suspension of the two companies is that the restructuring of Anshan Iron and Steel Group and Panzhihua Iron and Steel Group has been approved by the SASAC of the State Council. Analysts pointed out that this steel industry will once again be heavyweight and large scale integration. After restructuring, "Anshan Iron and steel" will become one of China's largest steel enterprises.
The Shenzhen Stock Exchange announced yesterday that it had a major impact on the share price and had no public disclosure. According to the relevant provisions, the company's applications for the shares of Anshan Iron and Steel Co., Ltd. and *ST vanadium titanium two company have been suspended since May 24th. On the first trading day of the suspension, *ST steel vanadium was closed at 8.18 yuan and Angang shares closed at 8.57 yuan.

It is reported that Angang Group and Panzhihua Iron and Steel Group are wholly foreign-owned enterprises under the State Council's SASAC. During the two sessions this year, Zhang Xiaogang, general manager of Anshan Iron and Steel Group, said that the strategic cooperation between Angang and Benxi Steel and northeast special steel will have substantial progress this year. Saddle group has been listed as early as 2005, and with the integration with Panzhihua Iron and Steel Group, the annual output of crude steel of the "Anshan Iron and Steel Complex" is expected to reach 40 million tons, which will surpass Hebei iron and Steel Group (000709).

China's iron and steel industry has been carrying out large-scale consolidation in recent years. In June 30, 2008, the Hebei iron and Steel Group, which was led by Tanggang and Handan Iron and Steel Co., was formally established. The capacity of the iron and Steel Group reached 31 million 750 thousand tons, exceeding that of Baosteel as the largest iron and steel enterprise group in the country. After Baosteel reorganized Ningbo iron and steel, it announced that the Guangdong iron and Steel Group also entered a substantive stage. In recent years, Wuhan Iron and Steel Group also restructured three major steel companies, namely, hugang, Kungang and Liuzhou Steel.

Iron and steel industry is an important basic industry of China's national economy. In recent years, it has resulted in overcapacity due to blind investment. Mergers and acquisitions have also been one of the important ways to adjust and upgrade the steel industry. The plan for revitalizing the steel industry, which was introduced last year, is clear. By 2011, the whole country will form several large steel enterprises with capacity of over 50 million tons, including Baosteel Group, saddle group and Wuhan Iron and steel group.

Angang Group took the lead in realizing the overall listing in October 2005. Now it is the largest shareholder of Angang Group, holding 10.39% stake in *ST vanadium and titanium, and the second largest shareholder. Pangang Group completed the merger and operation of assets last year, which is the actual controller of *ST vanadium titanium.

Anshan Iron and steel group plays an important role in the overall listing of Panzhihua Iron and steel group. In 2008, *ST vanadium titanium was the predecessor of Panzhihua Iron and Steel Group vanadium and titanium to absorb the merger of Panzhihua Iron and Steel Group's panzhiyu titanium and the Great Wall shares. The Anshan Iron and Steel Group is the third party to absorb and merge to provide cash options. During the period, Anshan Iron and Steel Group invested 1 billion 700 million full line placards, the 3 companies to protect the disk, and later promised that if the exerciser postponed the exercise 2 years later, in addition to obtaining the established consideration, the market return rate determined by Anshan Iron and steel company in the same period fixed income products could also be obtained. It was in the full escort of Angang Group that the integration of Panzhihua Iron and Steel Co. was successfully completed.