November 22, 2008

Pangang gets CNY 20 billion credit granted from Bank of China

It is reported that Pangang Group and Bank of China signed a CNY 20 billion worth of financial agreement for supporting the post quake reconstruction in the Southwest part of China.

As per report the earthquake substantially damaged the highways, bridges, infrastructures and houses in the Southwest, causing total direct economic losses of over CNY 150 billion. For reconstructing, it may need more than 6.5 million tonnes steel products as calculated. And the value is close to CNY 20 billion if per tonne steel product costs CNY 3000 on average.

Mr Fan Zhengwei chairman of Pangang Group said they will struggle to resume operation as soon as possible and devote into steel supply for the quake relief.

Bank of China has already granted credit of CNY 8.3 billion and provided load of CNY 4.4 billion to Pangang. And its branch in Sichuan donated CNY 300,000 in quake rescue. The bank said Pangang will play an important role in post quake reconstruction by supplying construction steels like vanadium-contained rebar.