ThyssenKrupp expands steel investment in China
12 May 2015
German industrial group ThyssenKrupp said it had agreed to buy a stake in a Chinese sheet steel company to strengthen its position with carmakers in southwestern China.
ThyssenKrupp said on Tuesday it was acquiring a 12.5 percent direct and a 37.5 percent indirect stake in a unit of China's Angang group which is building a hot-dip coating plant in Chongqing.
It already has a joint venture, Tagal, with Chinese steel producer Angang Steel, which is part of ThyssenKrupp's Steel Europe division.
"This agreement will enable ThyssenKrupp to further strengthen its position as an important supplier to the fast-growing Chinese auto industry, in particular in the premium segment," the company said in a statement.
It gave no financial details of the transaction.
ThyssenKrupp said it averaged growth of around 9 percent in China and increased its sales there to 2.5 billion euros ($2.8 billion) in its 2013/14 fiscal year to end September.
ThyssenKrupp's Steel Europe division accounted for 42 percent of the group's 1.26 billion euros in capital expenditure last fiscal year.
ThyssenKrupp earlier raised its full-year earnings outlook after forecast-beating second-quarter results.