Chinese steelmaker Taiyuan Iron & Steel (Group) Co., Ltd plans to acquire Zhongyu Iron & Steel Co., Ltd. Both companies are based in the northern Chinese province of Shanxi. The Economy and Information Committee of Shanxi Province lately held a meeting entitled "Symposium on the implementation plan for the merger of Taiyuan Iron & Steel (Group) Co., Ltd and Shanxi Zhongyu Iron & Steel Co., Ltd," signifying that the Shanxi provincial authorities are anxious to move forward with this acquisition process.
Meanwhile, it is reported that, after the acquisition in question, Linfen Iron and Steel Co., a subsidiary of Taiyuan Iron & Steel, will be merged with Shanxi Zhongyu Iron & Steel.
Furthermore, Li Xiaobo, board chairman of Taiyuan Iron & Steel, stated that, as China pushes forward with the elimination of backward capacities and industrial restructuring, reorganization and mergers is the right path for steelmakers to follow in the future. It is the only option for steelmakers that want to lower costs and achieve sustainable development, he said.