H share Chongqing Iron & Steel plans to buy new sheet steel production equipment as part of a move to upgrade its plants and enhance market share for its products. Chairman Tang Minwei said the equipment would have an annual production capacity of 800,000 tonnes of cold and hot rolled sheet steel but declined to reveal the cost. Parent Chongqing Iron and Steel Group has a debt-to-equity ratio of 68 per cent and is seeking bank loans with discounted interest to finance the plan. It will also forward the debt-for-equity swap proposal to the State Economic and Trade Commission, Mr Tang said. Previously, the parent pledged its entire 61.1 per cent in the H share to creditor Industrial and Commercial Bank of China (ICBC) in exchange for access to up to 650 million yuan (about HK$606 million) in new loans from the bank. ICBC will take over the equity through its state asset management company, he said. 'If the plan succeeds, the debt-to-equity ratio of the listed company will be reduced to well below 50 per cent from the present 58 per cent,' Mr Tang said.