Shanxi Province-based Taiyuan Iron & Steel Group (TISCO) announced that China’s largest steelmaker China Baowu Group has inked the free transfer agreement with Shanxi State-owned Capital Operation Co., who held 100 percent equity in TISCO and will transfer 51 percent of its equity in TISCO to Baowu Group.
Taigang Stainless Steel, the listed subsidiary of TISCO also announced that China Baowu Group will hold 62.7 percent of equity in it via indirect holding through TISCO.
TISCO is the leading company in the stainless steel industry among global markets, with an annual steel capacity of 12.94 million mt, including 4.5 million mt of stainless steel. In 2019, TISCO’s crude steel output amounted to 10.86 million mt, realizing a gross profit of RMB 3.513 billion. It is the second largest stainless steel producer in China.
In 2019, China Baowu Group produced 95.22 million mt of crude steel, while its total capacity has been close to 98 million mt per year. As a result, after taking over TISCO, the giant will exceed its target of more than 100 million mt of annual capacity, while this number was just 58.4 million mt in 2016. The consolidation provided more opportunities for the Chinese steelmaker, which will increase its share in the high value added steel products market and will improve its production efficiency.
