Hesteel receives further $5.144 bn relocation compensation payment

Hesteel Company Limited recently confirmed the receipt of 5.144 billion yuan in relocation compensation for its Handan branch. This payment is part of a larger agreement with the Handan Municipal Government, signed on December 20, 2022, regarding the closure and relocation of the Handan branch's steel production capacity from the urban area to a new base in Shexian County, Handan, which ceased operations in December 2022.

The total agreed relocation compensation for the Handan branch stands at 15.1 billion yuan, to be received within three years from the signing of the agreement. With this latest installment, the company has now accumulated 8.998 billion yuan in compensation. A remaining balance of 6.102 billion yuan is yet to be received.

Hesteel stated its commitment to closely monitor the progress and urge relevant parties to fulfill their compensation obligations promptly. The company also confirmed that, according to the agreement, the defaulting parties will be held responsible for breach of contract and will pay liquidated damages.