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Chinese Co. solidifies stake in Amory steel mill

September 15th, 2010 No comments

What was already official became officially official yesterday in China.

Anshang, a partially state-owned Chinese steel company, finalized an agreement with Steel Development Corp. to purchase a 14 percent stake in SDC’s facility in Amory that will manufacture rebar.

Magnolia Marketplace wrote a story two months ago about some of the angst this was causing members of the Congressional Steel Caucus. They were concerned this move was part of a Chinese plan to manipulate the U.S. steel industry from within, and wrote a letter to Treasury Secretary Timothy Geithner asking him to investigate the matter. The only thing new out of yesterday’s announcement is the 14 percent number. Originally, an SDC spokesman confirmed to the Mississippi Business Journal that Anshang would purchase a  “less than 20 percent stake” in the mill.

Neither Cong. Travis Childers, D-Booneville, who represents Amory as part of the 1st District, nor his general election opponent, Tupelo Republican Alan Nunnelee, had much of a problem with the Chinese investment when we spoke to them in early July. Neither did State Rep. Jimmy Puckett, D-Amory. They all said the area could use the 175 jobs SDC planned to provide once the facility is open. Childers expressed the most concern of the three, saying at one point in his interview with us that he didn’t want to “sell us out to Red China.” Nunnelee was probably the least bothered, countering that the Steel Caucus, whose members are mostly from the Rust Belt, might be a little jealous. “Sounds to me like it’s people trying to meddle in Mississippi’s business,” he said in early July.

At that time, there was no target date for the mill’s opening. That’s still the case.

To go with its 14 percent stake, Anshang will provide some of the technology the mill uses to make rebar, and it will also have a seat on SDC’s board.