Shanxi Province-based Chinese steel group Taiyuan Iron and Steel Company (Taiyuan Steel or TISCO) has signed an agreement with another local steelmaker Xingyuan Iron and Steel Company (Xingyuan Steel) according to which Taiyuan Steel will acquire a stake in Xingyuan Steel.
Within the framework of the agreement, Xingyuan Steel will avail of Taiyuan Steel's expertise in management, technology and marketing. Taiyuan Steel aims to develop Xingyuan Steel into a large integrated steel company with an annual production capacity of 5 million mt of crude steel, 5 million mt of pig iron and 5 million mt of finished steel.
In 2010, Xingyuan Steel achieved a net profit of RMB 212 million ($33.4 million), with annual outputs of 1.6 million mt of pig iron, 2 million mt of crude steel and 1.1 million mt of finished steel