The Board of Directors of China’s Hangyang Holdings has announced that the company has reached a tripartite agreement to acquire the assets of a steel manufacturer and expand its gases business.

The agreement, announced on 24th July, is with Shanxi Li Heng Iron and Steel Group Co., Ltd., and Ningbo Bonded Area Qianding Equity Investment Management Co. Ltd.

It will see Hangyang and Qianding jointly invest in setting up Shanxi Hangyang Qianding Industrial Gas Co. Ltd., in the site of the Shanxi Quwo Liheng steel plant. Shanxi Hangyang will then implement a project to acquire the oxygen generation assets of Liheng steel to provide gas services for the Shanxi Liheng Iron and Steel Group Co., Ltd.

The total investment is expected to be RMB 353m ($56m approx.).

The proposed existing assets of Liheng steel to be acquired include two 6,500m3/h air separation units (ASUs), one 12,000 m3/h ASU, one 6,000 m3/h ASU, two 10,000 m3/h ASUs, and one 15,000 m3/ h ASU, as well as all of the related piping, spare parts, and the plant buildings in three zones.

Hangyang stated that the implementation of the project has ‘positive meaning’ for the expansion of its gases business and the completion of its domestic regional portfolio, and is in line with the company’s development strategy to further expand the industrial gas business.