Ansteel plans to merge with Benxi to become world’s third-largest steelmaker

Friday, 16 April 2021 18:00:11 (GMT+3)   |   Shanghai
       

Liaoning Province-based Chinese steelmaker Bengang Steel Plates Co., Ltd. (Bengang Plates) announced on April 15 that Anshan Iron and Steel Group plans to merge (combine its indirect controlling stake) with its mother company Bengang Iron and Steel Group (Benxi Steel). However, the merger is still in the planning and preparation stage, and will need to wait for approvals from the relevant government departments.

The merger of the two Chinese steel giants Anshan Iron and Steel Group and Benxi Steel Group has been discussed since the early 2000s, but no official movements were made. New discussions about a possible merger have now emerged again and plans could be finalized in the coming year or so.

In 2019, Anshan’s steel production totaled 39.2 million mt, while Benxi’s output amounted to 16.2 million mt. With the total annual production of above 55 million mt, the new Chinese steel giant would become the world’s third-largest steel producer after Baowu and ArcelorMittal, surpassing Nippon Steel and HBIS Group.

The total capacities of Ansteel and Benxi amount to around 59 million mt of crude steel per year.       


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