SISG was formed in March 2008 when the provincial government of Shandong merged two state-owned steel producers.
According to China Securities Journal, SISG signed an agreement to take a 67% stake in Rizhao Iron and Steel.
Rizhao is founded and controlled by billionaire Du Shuanghua, who benefited from trading iron ore in Singapore.
[2] The consolidation is part of a plan by the Shandong provincial government to streamline its steel sector, one of the country's largest and most fragmented.
Rizhao and Shandong Iron and Steel had previously signed a letter of intent for consolidation in early November but the deal was abandoned in January after Kai Yuan Holdings Ltd, a property investment and heat energy supply company, bought about 30 percent of the core assets in Rizhao.