It is reported that Anshan Iron & Steel Group Corp crude steel capacity will swell to 42 million tonnes per year, after merging Benxi Steel, Panzhihua Steel, Dongbei Special Steel and Lingyuan Steel. That will crown new Anshan Steel as the largest steel company in China, instead of Hebei Steel.

Anshan Steel’s merge & acquisition plan is a great one, but seems hard to fulfill. China Securities Journal made special interviews with leaders of the related governments and companies on the M&A plan during the period of the Two Sessions of China.
Mr Wang Min Sectary of CPC Liaoning Provincial Committee and deputy to the National People Congress replied to the question that “There will be a great breakthrough and will any progress happen in the merge between Anshan Steel and Benxi Steel this year?”

Mr Zhang Xiaogang, GM of Anshan Steel and deputy to the NPC noted that the merge among Anshan Steel, Benxi Steel and Dongbei Special Steel would make material progress this year with the impulse of Liaoning Province.

Mr Yu Tianchen chairman of Benxi Steel and deputy to the NPC said the merge would be inevitable. “In my opinion, it’s not hard to implement the merge of Anshan Steel and Benxi Steel.”

The data from China Iron & Steel Association showed that Anshan Steel produced 20.13 million tonnes of crude steel in 2009; Benxi Steel yielded 9.06 million tonnes, Dongbei Special Steel churned out 1.6 million tonnes; Panzhihua Steel produced 8.18 million tonnes, Lingyuan Steel made 3.07 million tonnes. If Anshan Steel carries out its M&A plan in future, the new giant crude steel output will topped 42 million tonnes.

Sourced from MySteel.net

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