Under the proposed deal, Sutor intends to buy Shanghai Lgsteel Supply Chain Management Co. Ltd., a supply chain services platform.

Lgsteel provides users with a variety of online services, including steel procurement, marketing, processing, distribution, supply chain financing and logistics tracking, among other services for steel products, according to Sutor. 

 

"Since our business transformation, Sutor has been catching the attention of steel industry participants. The contemplated acquisition of Lgsteel is an important strategy for our new business model. In our march to becoming a leading fine steel customized service provider, we not only rely on our strong industry experience, but we also combine it with cutting-edge internet technology," the company said in a statement. 

 

"Based on our investigation, we chose Lgsteel, a famous domestic comprehensive e-commerce service platform of bulk commodities in the steel industry, as our target. We believe the contemplated acquisition will further promote the company's 'Internet + Fine Finished Steel Customized Services' business model." 

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Sutor Technology Group Ltd. is a leading Chinese manufacturer of, and customized service provider for, high-end finished steel products and welded steel pipes used by a variety of downstream applications. The company utilizes a variety of in-house developed processes and technologies to convert steel manufactured by third-parties into fine finished steel products, including hot-dip galvanized steel, pre-painted galvanized steel, acid-pickled steel, cold-rolled steel and welded steel pipe products. The company also provides fee-based steel processing services to customers, including industrial peers.