Tangsteel, Siemens plan to unite on-energy-saving cooperation venture

Tangshan Iron and Steel Group Co, or Tangsteel, signed a strategic cooperation framework agreement on Thursday with German technology giant Siemens Ltd on an energy-saving and environmental protection cooperation, a step by the Chinese company to further develop its non-steel business.

Facing a drop in prices for steel products, stricter production emissions standards and a severe overcapacity problem in China, many steel companies are seeking opportunities in non-steel sectors that can help build profits.

Wang Lanyu, president of Tangsteel, told China Daily that the company plans to increase its non-steel business from its current 20 percent of the whole business structure to 50 percent within five years.