Anyang Steel plans to secure iron ore supplies via mergers

Tuesday, 16 March 2010 16:58:14 (GMT+2)

Chairman of Henan Province-based Chinese steel producer Anyang Steel, Wang Ziliang, has stated that the company intends to secure iron ore supplies through mergers with smaller steel producers in Henan.

While Anyang Steel has access to ample supplies of low-priced coal, on the other hand it is faced with the problem of high transportation costs for iron ore supplies, as the company is located far from the ports.

The annual output capacity of Anyang Steel is about 13 million mt. At present, there are 31 steel enterprises in Henan Province, with only Anyang Steel's production capacity exceeding 10 million metric tons. Thus, as stated by Mr. Wang, Anyang Steel plans resolve its iron ore supply difficulties via mergers with the smaller producers in the province.

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