Reuters cited a source with direct knowledge of the matter as saying that Yangzhou Chengde Steel Tube Co Ltd, 49% owned by US private equity giant Carlyle Group, has hired Lehman Brothers to help it seek strategic options.

Sources said the company based in Yangzhou, China is considering a range of options which could include bringing in outside investors an initial public offering or a strategic partnership.

Washington DC based Carlyle bought the stake for USD 100 million in March 2007 from the privately held company. Sources said the process is in its early stages.