The government of China's Hubei Province has given the green light for the merger of several local steel companies into a new company called Hubei Dangu Iron and Steel Group (Dangu Group). It is expected that the new steelmaker's annual output capacity will be 3 million mt, while its annual revenues will total RMB 12 billion ($1.90 billion), with an anticipated gross profit of RMB 700 million ($110.71 million) each year.
The new group has been formed from the merger of Hubei Dangu Iron and Steel Co., Shiyan based-Fuyan Iron and Steel Co., Yu County-based Rongfeng Iron and Steel Co. and Yichang-based Fulong Iron and Steel Co.