Shandong Province-based Chinese steelmakers Guangfu Group and Chuanyang Group have signed agreements with Shandong-based Chinese steel producer Rizhao Steel Holding Group (Rizhao Steel) to transfer their capacities to Rizhao Steel. The mergers are parts of consolidation plans in the province, under which Rizhao Steel’s capacity will expand from the current 20 million mt per year to more than 40 million mt, with the company becoming another major steelmaking base in China.
Chuanyang Group has three million mt of crude steel capacity and can produce one million mt of sections annually. Guangfu Group has three million mt of crude steel capacity and 3.2 million mt of finished steel capacity. As a result, Rizhao Steel’s annual steelmaking capability will increase by six million mt owing to the two mergers. Besides the two steel mills in question, Rizhao Steel will expand further with the mergers of existing mills or the addition of newly-built capacities.