Sapphire first entered the China steel industry in 2007 by acquiring a 16% indirect stake in an integrated steel group. The steel group was divested from the steel business unit of Sichuan Chuanwei Group Co., Ltd ("Chuanwei") which is a local conglomerate with businesses spinning beyond steel to include iron ore and coal mining, cement production and real estate.Under the steel group are four subsidiaries - Special Steel, China VTM, Bowei and Weiyuan which collectively own iron-ore mines, vanadium, steel and coke plants in the same province.Apart from Special Steel, which Sapphire has since increased its stake from 11.2% to a 100% wholly-owned, the Group has deemed interests of of 11.69% in Weiyuan and 9.2% in directly-held China VTM.
