Valin Steel seeks investors for electromagnetic materials unit

Hunan Valin Steel (SZSE:000932) announced its subsidiary, Hunan Liangang Electromagnetic Materials Co., Ltd., intends to raise up to 1.5 billion yuan via a public offering to attract external investors. This capital injection aims to expedite the construction of its silicon steel project and optimize the company's governance structure. Valin Steel will maintain control of the subsidiary with at least 51% ownership. As of September 30, 2024, the net asset value of Hunan Liangang Electromagnetic Materials stood at 980 million yuan, serving as the pricing basis for the capital increase. The silicon steel project, with a total investment of 9.114 billion yuan, is designed to produce 800,000 tons of non-oriented silicon steel and 300,000 tons of grain-oriented silicon steel annually, targeting the new energy vehicle and appliance markets. Silicon steel production in 2024 hit 263,000 tons.