Two of China's 10 biggest steelmakers will be merged to create a behemoth with an annual output of 20 million tons - a move foreshadowing consolidation in the sector.
Anshan Iron & Steel Group (Ansteel) and Benxi Steel (Bensteel) will be combined to form Anben Steel Group Company, it was announced yesterday in Shenyang, capital of Northeast China's Liaoning Province.
"The two companies are among the most important steelmakers in China and play a big role in the market. The merger would greatly improve their competitiveness and position in the international market," said Zhang Guobao, vice-minister of the National Development and Reform Commission (NDRC), the country's policy-making body.
Less than one month ago, the NDRC issued a steel industry development policy which encourages domestic steelmakers to form bigger entities each with annual output touching 30 million tons by 2010.
Read more at China Daily