SINGAPORE (April 3): Steel manufacturer Delong Holdings said its unit Aoyu Steel plans to sell its pig iron production capacity of 1.08 million tonnes and steel production capacity of 1.21 million tonnes to Tsing Tuo Group Co. for a total consideration of RMB 400 million ($81.1 million).

The sale follows plans by the Hebei province's 12th National People Congress to reduce steelmaking capacity in the province by 31.86 million tonnes in 2017, and to speed up steelmaking capacity reduction efforts in the cities of Langfang, Baoding and Zhangjiakou.

Shares of Delong closed 1 cent higher at 65 cents.