Hebei Iron & Steel Co. Chairman Wang Yifang revealed today that the company is currently considering buying a specialty steelmaker in Shijiazhuang city.

Wang, who was attending parliamentary meetings in Beijing, told reporters, "As the largest steel company, Hebei Steel will lead the consolidation of steelmakers in the industry".

He did not reveal the name of the specialty steelmaker, nor did he elaborate on the talks that Hebei Iron & Steel Co. is planning to take over.

According to a report published in China Securities Journal on March 4, Hebei Iron & Steel Group was "in talks with Citic Pacific Ltd. to acquire Shijiazhuang Iron & Steel Co.", also known as Shigang.

The report stated that a 65 percent stake in Shigang was bought by Citic Pacific in November 2005 for 1.48 billion Yuan ($216 million).

The paper also stated that the Government of Hebei Province, which surrounds Beijing, holds a 20 percent stake, while the rest of the share is held by the company's management.

It was recently reported on March 1, that Hebei Steel was negotiating with a Brazilian iron ore enterprise, involving an iron ore development project.

Hebei Steel is presently seeking to obtain a large stake in the said Brazilian company.