Anshan, Benxi complete merger
Beijing hopes that the merger of two state-owned steelmakers in northeastern
China's Liaoning province will give the country's steel industry an added boost in terms of bargaining power and market influence.
The Anben Iron & Steel Group, created from the merger of
China's second largest steel producer, Anshan Iron & Steel Group (
Angang), and fifth largest steel producer, Benxi Iron & Steel Group (Bengang), will have an annual
production capacity of nearly 20 million tons.
Such
production capacity puts it nearly on level terms with
China's largest steelmaker, Baoshan Iron and Steel Group (
Baosteel), and brings Beijing closer to its goal of having two
steelmaking behemoths with annual capacities over 30 million tons by 2010.
Beijing hopes that the consolidation of the country's highly scattered steel industry will give
China an edge when negotiating raw material contracts and determining the market price of steel.