As revealed by insiders, two major Chinese steel producers, Anshan Steel Group and Panzhihua Steel Group, have recently agreed on all reorganization details between each other.
In H1 2009 Angang had declared its intention of restructuring Panzhihua Steel in its document entitled "Program for adjusting and reinvigorating the steel industry." The reorganization program has been hindered somewhat by two factors, i.e., tax issues and resettlement of personnel. It is also remains subject to the approval of the Chinese regulatory authorities.
Panzhihua Steel has achieved its target of an annual steel production capacity of 7 million mt, and has also set the long-term goal of reaching a 10 million mt annual capacity. This would be a major addition to the total production capacity of Anshan Steel, which stands at 50 million mt.