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Lawmakers Cheer as China Steel Firm Drops US Investment

Thursday, 19 Aug 2010 04:18 PM

Lawmakers from U.S. steel-producing states on Thursday cheered a decision by Chinese steel company Anshan Iron & Steel Group to put plans to invest in a U.S. steel plant on hold.

"Not only would this venture have set a dangerous precedent further undermining our domestic steel market, but it posed serious national security concerns," said Representative Tim Murphy, a Pennsylvania Republican, in a statement.

Murphy and Representative Pete Visclosky, an Indiana Democrat, led a group of 50 U.S. lawmakers who had urged the Obama administration's Committee on Foreign Investment in the United States (CFIUS) to investigate the proposed investment.

Lawmakers said they did not know whether CFIUS had any role in the Chinese company's decision.

But "it is our hope that CFIUS remains vigilant in ensuring that all investments in the United States are fully vetted for the purpose of protecting American national security and American jobs," Visclosky said.

Chen Ming, vice-chairman of Angang Steel Co. Ltd., told reporters earlier on Thursday in Hong Kong that the company's parent, Anshan Iron & Steel, had decided to put its investment plan on hold because of U.S. lawmakers' opposition.

"This is all because of the United States and we believe the chance for the project to be approved was small," Chen said at a news conference on Angang's quarterly results.

Anshan Iron & Steel said in May that it had agreed to take a 14 percent stake in a $175 million facility being built in Amory, Mississippi by Steel Development Co., a U.S. startup.

Chen said Ashan Iron & Steel had not actually put any money in the project yet, so would not incur any loss.

© 2017 Thomson/Reuters. All rights reserved.

 
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Lawmakers from U.S. steel-producing states on Thursday cheered a decision by Chinese steel company Anshan Iron Steel Group to put plans to invest in a U.S. steel plant on hold. Not only would this venture have set a dangerous precedent further undermining our domestic...
Lawmakers,China,Steel,Firm,US,Investment
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2010-18-19
Thursday, 19 Aug 2010 04:18 PM
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