Baotou Steel Rare-Earth Strengthens Processing Capability      

Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Co., Ltd. (SH: 600111) agreed to acquire a 44% stake in Beijing Sanjili New Material Co., Ltd. for a cash consideration of RMB20.44 million, announced on March 2nd.
    Baotou Steel Rare-Earth agreed to buy a 29% stake from Baotou Jinmeng Rare Earth Co., Ltd. and 15% from Beijing Jinmeng Shuanglong Science & Technology Co., Ltd.
    After the acquisition, Baotou Jinmeng and Jinmeng Shuanglong still own 36% and 20% in Beijing Sanjili respectively.
    Located in Yanqing County Economic and Technology Development Zone and established in July 2001, Beijing Sanjili engages in the manufacture and sales, imports and exports of neodymium-iron-boron permanent magnet materials, hydrogen storage materials, rare earth materials and related synthetic materials.
    Baotou Jinmeng focuses on rare earth separation, with annual cerium dioxide production of 1 000 tons.
   The acquisition would help Baotou Steel Rare-Earth extend its production chain, and is in line with strategy to increase production of high value-added products. It is expected to enhance the company's leading position in the rare earth processing industry.