WL Ross & Co. among investors in China steel restructuring fund

WL Ross & Co. among investors in China steel restructuring fund
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WL Ross & Company, part of Atlanta-based Invesco, is reportedly among the investors in a $5.9 billion fund being designed to restructure parts of the Chinese steel industry.

According to an April 8, 2017, online report from Beijing-based China Daily, the fund is scheduled to be launched in June 2017 with a goal to “push forward the [Chinese] steel industry’s restructuring and upgradation.”

The newspaper says four entities have signed an agreement to invest in the fund, including a 26 percent stake for WL Ross & Company, the investment fund founded by current United States Secretary of Commerce Wilbur L. Ross.

Ross is reportedly in the process of completing his disengagement from his financial holdings. A spokesperson for WL Ross & Company has told the Dubai, United Arab Emirates-based Gulf News that Ross himself had “nothing to do with” the Chinese fund investment.

A Department of Commerce spokesperson likewise has told the Gulf News that “there is no linkage between this joint venture and any discussions between Secretary Ross and Chinese government officials” in early April, and that Ross “is not a participant in this joint venture.”

The deal announced involves four entities who signed a framework agreement in early April 2017 to establish what they are calling China’s first steel industry restructuring fund. China Baowu Steel Group’s Hwabao Investment Co. Ltd. and the U.S.-China Green Fund will each hold a 25 percent stake; WL Ross & Company will have a 26 percent stake; and China Merchants Finance Holdings Co. Ltd. will hold the remaining 24 percent, according to China Daily.

Shanghai-based Baowu Steel is among China’s largest steelmakers. The company’s chairman Ma Guoqiang is reported by China Daily as saying of the new fund, “The restructuring of the steel sector will be of great aid to the Chinese economy. It is a great mission containing huge business opportunities. I know the journey to success will be full of obstacles, but along with the four great partners, I will pour all my energy into the new career.”

According to China Daily, in October 2016 China’s Ministry of Industry and Information Technology spelled out targets for steelmakers in China to cut their crude steel capacity by from 100 million to 150 million tons in the ensuing five years.

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Source: Recycling Today
WL Ross & Co. among investors in China steel restructuring fund
<![CDATA[WL Ross & Company, part of Atlanta-based Invesco, is reportedly among the investors in a $5.9 billion fund being designed to restructure parts of the Chinese steel industry.   According to an April 8, 2017, online report from Beijing-based China Daily, the fund is scheduled to be launched in June 2017 with a goal to “push forward the [Chinese] steel industry’s restructuring and upgradation.”   The newspaper says four entities have signed an agreement to invest in the fund, including a 26 percent stake for WL Ross & Company, the investment fund founded by current United States Secretary of Commerce Wilbur L. Ross.   Ross is reportedly in the process of completing his disengagement from his financial holdings. A spokesperson for WL Ross & Company has told the Dubai, United Arab Emirates-based Gulf News that Ross himself had “nothing to do with” the Chinese fund investment. A Department of Commerce spokesperson likewise has told the Gulf News that “there is no linkage between this joint venture and any discussions between Secretary Ross and Chinese government officials” in early April, and that Ross “is not a participant in this joint venture.”   The deal announced involves four entities who signed a framework agreement…