Angang executive says US steel joint venture is dead

Anshan Iron & Steel Group’s participation in a US steel project has been thrown into doubt after an executive said the deal had been cancelled as “the likelihood the project will be approved is very low,” the Wall Street Journal reported. Chen Ming, vice president of the company’s listed unit Angang Steel (0347.HK, 000898.SZ), added that efforts would continue to secure other overseas investments. Anshan agreed to invest about US$7 million for a 14% stake in a steel-rebar project in Mississippi, led by US firm Steel Development. However, the deal met with stern resistance from US lawmakers, citing concerns over national security and the loss of US jobs. Fifty members of the Congressional Steel Congress urged the Committee on Foreign Investment in the US to “thoroughly investigate” Anshan’s joint venture plan. Suggestions of a withdrawal come after repeated assertions from Anshan president Zhang Xiaogang that the project would still go ahead.