Government abandon a buyout for keeping jobs for workers.
“State run Beijing News reported that China’s Jilin Provincial government has ordered Jianlong Group to abandon a buyout plan of state owned Tonghua Iron & Steel Group after a manager was killed in a weekend protest.
The Beijing News said that Jilin’s government ordered Jianlong to drop its takeover, saying the company will never again take part in any plan to restructure Tonghua.
It added that Tonghua workers abandoned their blockade of the steel mill about an hour later.
As per earlier reports , several thousand Tonghua workers staged a rally to protest being taken over by Jianlong, attacking the closely held company’s representative Mr Chen Guojun and battering him to death. Tonghua workers blocked a railway track and prevented supplies reaching the steel mill, forcing the company to suspend production for 11 hours.
Tonghua produces 7 million tonnes of steel a year, according to its Web site. It ranks 244th among China’s top 500 enterprises. The company posted a profit of CNY 42.8 million in June, reversing a loss, according to its Web site.”
(Source from Bloomberg)
