China’s stainless steel and nickel giant Tsingshan Holding Group is considering selling some of its assets in Indonesia to China Baowu Steel Group, the world’s top steel producer, sources said.
Tsingshan has in recent years been investing heavily in Indonesia, turning the nickel-rich Southeast Asian nation into a hub of stainless steel and nickel production and a possible top supplier of electric vehicle battery chemicals.
“(It’s) still under discussion,” a Tsingshan official said, referring to the possible sale, without elaborating.
Two other sources at Baowu confirmed the talks, with one saying that the acquisition would be part of the Chinese state-controlled steel firm’s long-term goal to expand in the stainless steel sector, especially in Southeast Asia.
It would also be in Baowu’s interests to expand into nickel, most of which is used in making stainless steel.
“Our layout in the nickel industry is quite limited, and it is now too late to buy resources and invest a large amount of money to build factories,” said a second source at Baowu.
“Tsingshan has the intention to sell some of their assets and build good relationships with a state-owned company. Both sides are interested in getting a deal,” the source added.