Boasteel Merger May Just Be the Beginning of Chinese Steel Industry Consolidation
09/20/2016 - The merger of China’s Baosteel and Wuhan Iron and Steel Group might be the first of several mergers among the country’s steel producers, reports the Bloomberg news service.
According to Bloomberg, China is looking at forming two major steel groups, with one serving the north and the other serving the south. Under that plan, the combined Baosteel would serve the south, and a merged Hebei Iron & Steel Group and Shougang Group would serve the north, Bloomberg said.
Additionally, China’s fourth-biggest producer Ansteel Group Corp., might merge with Benxi Steel Group Corp., a regional producer, Blomberg said, citing a report from Shanghai Securities News.
According to the English-language Global Times newspaper, Chi Jingdong, vice chairman of the China Iron and Steel Association, disclosed that China’s goal is to consolidate 60 to 70 percent of its production into approximately 10 steel groups by 2025.
Three or four of those steelmakers would have capacities of more than 80 million tons, the publication said, and six to eight would have capacities of 40 million tons.
Additionally, China’s fourth-biggest producer Ansteel Group Corp., might merge with Benxi Steel Group Corp., a regional producer, Blomberg said, citing a report from Shanghai Securities News.
According to the English-language Global Times newspaper, Chi Jingdong, vice chairman of the China Iron and Steel Association, disclosed that China’s goal is to consolidate 60 to 70 percent of its production into approximately 10 steel groups by 2025.
Three or four of those steelmakers would have capacities of more than 80 million tons, the publication said, and six to eight would have capacities of 40 million tons.
