- Sputnik International
World
Get the latest news from around the world, live coverage, off-beat stories, features and analysis.

China Reacts to EU Anti-Dumping Penalties With Bid for US-Slovakian Steelworks

© Wikipedia / Pietros Sacanis US Steel Košice
US Steel Košice - Sputnik International
Subscribe
While the EU attempts to block the sale of cheap Chinese steel in Europe, Chinese buyers have "swept all other offers off the table," in their bid for U.S. Steel Košice, Slovakia's largest steelworks.

Slovakia's Prime minister Robert Fico arrives for an emergency Eurogroup finance ministers' meeting on Greece at the European Council in Brussels, on June 22, 2015 - Sputnik International
Slovakian PM Warns Referendum 'Adventures' Are 'Threat' to EU
Last week Slovakia's Hospodárske Noviny reported that Chinese buyers are close to finalizing a deal to buy U.S. Steel Košice, Slovakia's largest steelworks. The factory, formerly known as Východoslovenské železiarne (East Slovakian Ironworks), was bought by US Steel in 2000.

According to Bratislava-based Finweb, the prospective buyers, Hesteel Group, have made a 1.4 billion euro ($1.5 billion) bid for the factory, the largest acquisition or merger by a Chinese company so far this year.

"The sale of U.S Steel Košice is beginning. Its American owners have given the 'green light' to Chinese company Hesteel Group, which swept all other offers off the table," Finweb reported.

The owners reportedly rejected lesser offers from the CEFC China Energy conglomerate, and a Czech consortium led by Moravia Steel.

In 2015 Hesteel produced 47.7 million tons of steel, making it the world's second-largest steel producer in the world behind Luxembourg-based ArcelorMittal.

If approved, the Slovakian purchase would be the second by Hesteel in Europe in as many years, after the company bought the Smederevo steelworks in Serbia last year. The acquisition was also made from U.S. Steel, which had bought Smederovo in 2012 for one US dollar.

In July, the European Steel Association (EUROFER) initiated an anti-dumping investigation with the EU Commission, which charges that the acquisition has resulted in cheap Chinese steel being re-exported from Serbia to the EU.

© Wikipedia / Mgr.Marta KotuličováU.S. Steel Košice, in Košice, Slovakia
U.S. Steel Košice, in  Košice, Slovakia - Sputnik International
U.S. Steel Košice, in Košice, Slovakia
Given the EU's concerns about alleged dumping of Chinese steel on the European market, it remains to be seen whether the purchase of U.S. Steel Košice will get approval from the EU Commission.

On multiple occasions in recent months the EU has imposed duties on Chinese steel imports of up to 81.1 percent after finding they were being sold at heavily dumped prices.

Mining coal at Bachatsky coal strip mine - Sputnik International
Asia
West Tries to Deprive China’s Competitive Advantage in the Coal and Steel Market
Mikhail Belyaev of the Institute of Stock Market and Management told Sputnik that the EU is in a difficult position since Hesteel appears to be the only buyer that can provide the amount of investment the plant needs.

"The attitude of European institutions to the planned transaction may be twofold. Firstly, in the EU they think that if the steel industry ends up in strong financial hands, steel will be produced and Europe's position in the steel market will be strengthened. On the other hand, the plant will belong to China. Europeans understand that China is not taking this step because it is concerned about Europe. This is an absolutely strategic, pragmatic decision made in order to strengthen Chinese control over the world's steel capacity," Belyaev said.

"China's big ship is cutting through the water, without paying heed to any storm. It is taking its own course, not paying attention to the EU's attacks in the form of anti-dumping duties or the financial difficulties of the absorbed company. China psychologically positions itself as a country that can afford a lot financially. Especially now it has grounds not to pay attention to the global cataclysms that concern both Europe and the United States. It (China) is doing what it sees fit in terms of strengthening its global influence."

Never miss a story again — sign up to our Telegram channel and we'll keep you up to speed!

Newsfeed
0
To participate in the discussion
log in or register
loader
Chats
Заголовок открываемого материала