Hubei Province-based Chinese steelmaker Wuhan Iron and Steel Corporation (WISCO) is currently negotiating with steel producer Shaanxi Iron and Steel Corporation Ltd (Shaanxi Steel), based in the southwestern Chinese province of Shaanxi, on the possibility of merger and reorganization between the two companies in the future, an insider at WISCO has disclosed.
Shaanxi Steel was jointly established by the State-owned Assets Supervision and Administration Commission of Shaanxi Province (SASAC) and Shaanxi Coal and Chemical Industry Group Corporation Ltd in 2009, and has an annual production capacity of approximately 10 million mt of finished steel products.
WISCI official Bai Fang said WISCO intends to push forward its strategy of development in southwestern China through mergers and reorganization.