On May 26, Henan Province-based Chinese steel producer Anyang Iron and Steel Group (Anyang Steel) signed an agreement to acquire three other privately-owned steel producers, namely, Fengbao Special Steel, Xinpu Steel and Yaxin Steel, which are all located in Henan Province.
Wang Ziliang, president and chairman of Anyang Steel, commented, "Our company has become a modern steel enterprise with an annual production capacity of 10 million mt and above following development over the past fifty years. We have not recorded a loss in the past 32 consecutive years. In 2010, the company's net profit reached RMB 150 million ($23 million)."
By the end of last year, the aggregate annual production capacity of the three private sector steel companies in question amounted to over 5 million mt, while their aggregate net profit reached RMB 166 million ($25.4 million).