Anshan, Benxi complete merger

Anshan, Benxi complete merger

Beijing hopes that the merger of two state-owned steelmakers in northeastern China's Liaoning province will give the country's steel industry an added boost in terms of bargaining power and market influence. The Anben Iron & Steel Group, created from the merger of China's second largest steel producer, Anshan Iron & Steel Group (Angang), and fifth largest steel producer, Benxi Iron & Steel Group (Bengang), will have an annual production capacity of nearly 20 million tons. Such production capacity puts it nearly on level terms with China's largest steelmaker, Baoshan Iron and Steel Group (Baosteel), and brings Beijing closer to its goal of having two steelmaking behemoths with annual capacities over 30 million tons by 2010. Beijing hopes that the consolidation of the country's highly scattered steel industry will give China an edge when negotiating raw material contracts and determining the market price of steel.