According to the 12th five-year plan period (2011-15) development objectives for the metallurgical industry in Chengdu in China’s Sichuan Province released by the Economic and Information Commission of Chengdu on January 6, seven small steel producing enterprises, with annual outputs below 1 million mt in 2009 will be integrated into a new company named Sichuan Metallurgical Holding Group Co., Ltd.
In addition, during the period in question, 4.4 million mt of backward crude steel capacity and 1.38 million mt of steel rolling capacity will be eliminated in Chengdu, affecting 41 metallurgical enterprises. In line with the planned steel sector integration, the top two steel producers in Sichuan Province, namely, Pangang Steel Vanadium & Titanium Plant Co. and Sichuan Metallurgical Holding Group Co., Ltd, will account for 90 percent of steel production capacity in Sichuan, with their annual revenues expected to reach RMB 20 billion ($3.2 billion) and RMB 10 billion ($1.6 billion) respectively.