Anshan Iron and Steel, one of China’s largest steelmakers, is forging ahead with a controversial US investment in the face of strong opposition from US lawmakers and industry associations.
The Chinese state-owned group will purchase a 14 per cent stake in Steel Development Company and join the board of directors, the companies announced Wednesday, without disclosing how much Anshan will pay for the stake.
The other equity partners in the privately-owned Steel Development have not been disclosed, but John Correnti, chief executive, said they were “all American” and included himself. Steel Development is constructing a $168m reinforcing bar facility in Amory, Mississippi, and may build four more mills after that. The investment has been criticised by the Congressional Steel Caucus, which urged the government in July to investigate the deal on national security grounds.