Major Chinese steel producer Baosteel Group has announced that its plans to acquire and integrate two Guangdong Province-based steel companies, Guangzhou Iron and Steel Co., Ltd (Guangzhou Steel) and Shaoguan Iron and Steel Co., Ltd (Shaoguan Steel), have still not received the green light from the regulatory authorities.
In 2008, Baosteel revealed its plans to integrate Guangzhou Steel and Shaoguan Steel. Baosteel intended to launch large steelmaking programs in Zhanjiang, Guangdong through the integration program in question. However, with the start of the global economic crisis in 2008 and the Chinese government's decision to tackle the overcapacity issue, Baosteel was obliged to suspend its plans.