Baosteel set to buy stake in industrial gas company

Overcapacity in steel sector forces firm to chart new growth strategy

Shanghai Baosteel Gases Ltd and global private equity firm Warburg Pincus have inked an agreement to buy the industrial gas assets of Henan Jinkai Chemical Investment Holding Group for 3 billion yuan ($488 million), the two companies said on Tuesday.

Baosteel Gases, wholly owned by Baosteel Group, is one of the businesses that the steel conglomerate is betting big as it seeks ways to offset the overcapacity issues in the industry.