A new model for solving the issue of excessive steel potential of China

Tangshan Iron and Steel Group Co Ltd is the leader in the actions taken to go beyond the border, in conditions when the country is fighting excess capacities in the iron and steel industry.

Against the background of the problems of excess capacity in the Chinese steel industry Deutsche Bank AG, he said that he, along with Duferco SA, was an international dealer, created a credit line for $ 800 million with a certain term of prepayment for Tangsteel in the northeastern province of Habe. This is the greatest financing of this Chinese company.

"There are many strong and active players in Chinese ferrous metallurgy, similar to Tangsteel who continue to contribute to its economic growth. This financing is designed to support Tangsteel in the export of cold-skat products of a high-class steel," said Frank Wu, regional head of structural financing of the Asia-Pacific regions in banking transactions of Deutsche Bank.

According to him, an increase in the export of metal products from such Chinese companies will help to use the potential of the domestic market. The basis of comprehensive cooperation between the international bank, the trader and the Chinese steel company is the Smart Model to use the advantages of each of the parties to survive on the market, said Zhang Tishan, senior analyst of the Steel Provider.

In March, Tangsteel acquired a 10 percent share of Duferco in the international trade holding of Switzerland, the largest trader in the world, which is the beginning of deepening cooperation in the international market. "Internationalization will help to best use resources around the world, especially existing platforms and business models," said Yu. EN, president of Tangsteel.