HBIS Company to increase contribution to HBIS Laoting Steel capital

Chinese steel company HBIS Company Limited, based in Hebei Province, announced that it plans to increase its capital contribution to HBIS Laoting Steel Co., Ltd. from 4.8 billion yuan ($0.7 billion) in cash. HBIS Laoting Steel is a subsidiary of HBIS with an authorized capital of 21.27 billion yuan ($3.1 billion). HBIS owns 80.21% of the shares, while the Hebei Steel Industry Transformation Fund owns the remaining 19.79%. After increasing the contribution to the capital, the authorized capital of HBIS Laoting Steel will increase to 25.15 billion yuan ($3.7 billion), while HBIS will own 83.26% of the shares, and the Hebei Province Steel Industry Transformation Fund - 16.74%.

HBIS Laoting Steel is mainly engaged in the smelting of cast iron and steel, as well as the rolling and processing of steel. He is also involved in the development of metallurgical technologies and the promotion of energy-saving technologies. It serves as an onshore base for the modernization and relocation of the HBIS Group's production facilities.

The last step of HBIS Company Limited will introduce capital and optimize the industrial structure of HBIS Laoting Steel, which will meet the long-term interests of the company.