During his visit on March 29 to Lengshuijiang Iron and Steel Inc., Mei Kebao, deputy secretary of China's Hunan Province, stated that the merger project regarding the steelmaker should be advanced rapidly in order to achieve stronger development of the steel industry in Hunan.
In line with the blueprint of the provincial government, Hunan Valin Iron and Steel Group has lately commenced a merger process in relation to Lengshuijiang Iron and Steel.
Valin Steel Group is one of the ten largest steel enterprises in China. Among its subsidiaries, Lianyuan Steel mainly produces automobile plates and silicon steels, Xiangtan Steel focuses on wide plate production, while Hengyang Steel produces steel pipes.
Lengshuijiang Iron and Steel, established in 1958, mainly produces construction steels. The company has increased its annual capacity to 3 million mt, from 300,000 mt ten years ago, and is now ranked among the top 500 large scale enterprises in China.