According to this Reuters news article, Anshan Iron & Steel, China’s fourth largest steel producer and also a state owned corporation, has backed out of its plans to invest in Steel Development Company, a start-up steel producer led by former Nucor CEO, John Correnti. The investment included a 14% stake in a $175m facility as well as toward building four re-bar plants and one flat rolled product mini-mill, all based in the US as we previously reported.
According to comments released by Congressional Steel Caucus Chairman Pete Visclosky (D-IN), “While it is unknown what impact, if any, that the Committee on Foreign Investment in the United States may have had on this decision, it is our hope that CFIUS remains vigilant in ensuring that all investments in the United States are fully vetted for the purpose of protecting American national security and American jobs. We remain committed to ensuring that American steelworkers are able to compete on a level playing field and that American steel is able to continue keeping our country safe and our economy strong.
And according to the Reuters article, the Vice Chairman of Angang Steel Co. Ltd (parent company of Anshan Iron & Steel) said that the company decided to put plans on hold “due to US lawmakers’ opposition. He continued by saying, “This is all because of the United States and we believe the chance for the project to be approved was small,” Chen said at a news conference on Angang’s quarterly results.
Postscript: We received an email and two links to an update to this post stating that China Anshan is still committed to this investment. You can review the link here. We will be updating this story next week as I am on vacation and have lined up several other stories in my absence.