Companies

Shougang sees progress on Tonghua takeover

(Agencies)
Updated: 2010-07-12 13:45

Cooling towers (R) are seen at the Shougang Group steel plant, on the outskirts of Beijing on March. [Agencies]

SHANGHAI - China's Shougang Group is pushing ahead with the takeover of Tonghua Iron & Steel Group in Jilin province, a company official said on Monday.

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"The deal is still advancing, and talks are going well," said an official from Shougang's public relations department.

Her remarks contradicted earlier reports that Shougang had to suspend the takeover plan after meeting resistance from local government authorities on the matter of restructuring.

The official said the reports were "totally untrue" but declined to reveal a timetable for the deal.

Beijing is encouraging mergers and acquisitions to boost steel sector consolidation.

Shougang is China's seventh largest mill, producing 17.3 million tons of crude steel last year.