Baosteel to invest in FeSi maker for electrical steel development

To control costs and to improve its competitiveness in electrical steel, Baoshan Iron & Steel Co (Baosteel) plans to invest in Hubei Sentai Metallurgical Co, a subsidiary of Wuhan Iron and Steel Group (Wugang), aiming to secure ferrosilicon supplies, the Shanghai-based steel giant has announced. Baosteel is the listed arm of the world's top steelmaker China Baowu Group (Baowu), while Wugang is a major Baowu subsidiary, Mysteel Global notes.

Baosteel's investment in Hubei Sentai will reach Yuan 717 million ($98.72 million), with Yuan 213 million being used to acquire 47.8% shares of Wugang's shares in Sentai and the other Yuan 504 million being injected to increase Sentai's registered capital, Baosteel said in a release. Located in Central China's Hubei