Four steel companies in the northern Chinese city of Tianjin have announced that they will merge as part of central government plans to consolidate the steel sector, the local municipal government said on July 14.
The new Bohai Steel Group, launched on July 13, consolidated the assets of Tianjin Steel Pipe Group, Tianjin Iron and Steel Group, Tianjin Tiantie Metallurgy Group and Tianjin Metallurgy Group, according to the announcement.
The aggregate crude steel output of the four companies amounted to around 20 million mt in 2009, which would put it seventh among China's biggest steelmakers last year. Among the four companies, Tianjin Steel Pipe Group is the biggest oil casing pipe base in China, with an annual capacity of 3 million mt; Tianjin Tiantie Metallurgy Group has an annual capacity of 5 million mt of hot rolled coil, medium plate and rebar; Tianjin Metallurgy Group mainly produce hot rolled sheet and colled rolled sheet, with a capacity of 5 million mt; while Tianjin Iron and Steel Group focuses on the production of medium plate, bars and wire rod, with an annual capacity of 6.5 million mt.