Hong Kong listed Angang Steel has announced it is to establish an industrial gas company together with Angang Engineering Construction Group Co. Ltd and Angang Group General Industries Development Co. Ltd.
The new gas company formed by the three parties will produce and sell various types of industrial gases.
These will include cryogenic liquids, metal cutting gases, vehicle gases, LPG, compressed gases, high purity gases, and medical gases.
Registered capital for the new entity will stand at RMB 45m ($7.2m approx.), of which Angang Steel, Angang Construction and Angang Industries will contribute (in cash) RMB 18m, RMB 22.9m and RMB 4.1m, respectively.
Angang Construction currently owns Angang Construction Gas Technology Company and Yingkou Gas Company, while Angang Industries owns Angang Industries Medical Oxygen Company, and Angang Steel has a 300 tonnes per day (tpd) liquefier under construction on a 40,000m2 site.
A statement from Angang Steel explained that the newly formed gas company will operate these existing assets on a rental basis.
The company also stated that the aim of the gas company is to optimise the existing gas resources of Angang Group. Following its inception, the company will ‘enhance the development’ of the local industrial and domestic gas industry and provide a steady and sustainable growth area of non-steel in nature.