BEIJING, Aug 17 Asia Pulse - The state-owned Anben Steel Group, a steel conglomerate re-organized on the basis of Anshan Iron and Steel Group Corporation (Angang) and Benxi Iron and Steel (Group) Co., Ltd. (Bengang) on August 16, will welcome participation of other capitals including foreign capital, said the Liu Jie, chairman of the Promotion Committee of Anbens BOD and general manager of Angang in the press conference.

All assets of Angang and Bengang now are state-owned, though they have developed some subsidiaries with participation of foreign capital. For instance, Angang New Steel Co., Ltd. (SSX:000898) has been listed in the Hong Kong and the A-share market of the Chinese mainland and Bengang Steel Plate Co., Ltd. (SSX:000761) has been listed on the domestic A-share and B-share markets. Last year, Angang joined hands with ThyssenKrupp Stahl AG of Germany in jointly building a production line in Dalian to produce high-grade steel sheet for sedan use; and Bengang also established cooperation with Pohang Iron and Steel Co., Ltd. of the Republic of Korea in cold-rolled steel sheet.

New Anben Iron and Steel Group will welcome the participation of external capitals include foreign capital in the form of equity or non-equity joint venture, said Liu.

Zhang Yingfu, chairman of Bengangs BOD and vice chairman of the Promotion Committee of the Anbens BOD, revealed that many iron and steel enterprises had hoped to participate in the new group as early as when Angang and Bengang negotiated on the alliance and reorganization issue. But Anben hasnt absorbed new members and external capitals yet for the complicity of the organization.

However, Anben will absorb high quality assets selectively when Angang and Bengang fully merged, said Zhang.