It is reported that Handan Iron and Steel Group Company Ltd and Handan Zongheng Iron and Steel Group Company Ltd in Hebei Province signed a Letter of Intend concerning establishing strategic partner relationship, which involves raw materials purchase, products sale, company management, technology development, and assets recombination and so on.

Hangang is a state owned company and Zongheng Steel is a private company and they have different histories and specified features. Hangang is a major high grade plate and sheet production base in Hebei Province with a capacity of 10 million tonnes per year and a ratio of plate and sheet of 83.3%.

The New Area project phase one of Hangang is to launch full production in 2008. Zongheng Steel has a middle and wide strip capacity of 2.60 million tonnes per year.