It is reported that Handan Iron & Steel Company Limited in North China's Hebei province has signed a letter of intent on strategic alliance with Handan Zongheng Iron & Steel Company Ltd recently. The cooperation is mainly on raw materials purchase, enterprises management, technology development and assets consolidation etc.

State owned Handan Steel is an important flat product maker in Hebei with designed capacity of 10 million tonnes.

Handan Zongheng Iron & Steel is privately owned with production capacity of 2.6 million tonnes per year of medium and wide strip.