On December 18, the official inauguration of Chinese steelmaker Shougang Changzhi Iron and Steel Co. took place, following the merger of Shougang Group and Shanxi-based Chanzhi Iron and Steel Co.. By 2015 the new company aims to register sales revenues of at least RMB 20 billion and produce more than 6 million mt of crude steel and 5.8 million mt of finished steel.
During the 12th Five-year Plan period (2010-2015), the new company's overall investment in the iron and steel business and in upstream and downstream operations is expected to amount to RMB 24.5 billion.
The merger of Changzhi Steel and Shougang is in accordance with China's plans for the restructuring and reinvigoration of its steel industry, and will promote the upgrading of products, will facilitate structural adjustment of the steel industry in Shanxi and will boost local economic development.