Shandong Province-based Chinese steelmaker Qingdao Iron and Steel Group Co. has decided to sell Guangdong Province-based metals manufacturer and processor Welmetal Group for RMB 213 million ($34.8 million).
Welmetal Group recorded respective net losses of RMB 11.64 million ($1.9 million) and RMB 10.08 million ($1.65 million) in 2012 and in the first half of 2013. Qingdao Steel has requested that the registered capital of prospective buyers should not be less than RMB 200 million ($32.68 million). Additionally, buyers will be required to invest RMB 800 million-1 billion ($130.7-163.4 million) in Welmetal Group within six months of the purchase.