In a sure sign of China’s steel industry moving towards increasing concentration, the state-owned steel major, Ansteel Group, is moving towards acquiring the Benxi Iron and Steel Group Co. in China’s Liaoning Province, as per latest reports accessed by SteelMint.
The State-owned Assets Supervision and Administration Commission for the Province of Liaoning transferred its 51% stake in Benxi Iron and Steel Group to Anshan Iron and Steel Group Co., Ltd. (Ansteel Group) for free. So, the Benxi Iron and Steel Group became the controlling subsidiary of the Ansteel Group.
As a result of this vital acquisition, Ansteel’s crude steel production capacity is likely to reach 63 mn t/year. The company could thereby emerge as the third largest steel producer in China.
Ansteel’s reorganisation of Benxi Iron and Steel is a step towards making state-owned steel enterprises stronger and better, as per reports by the Chinese media. The Anshan Iron and Steel and Benxi Iron and Steel reorganisation is conducive to deepening the supply-side structural reform, increasing the concentration of the steel industry, promoting the optimisation and structural adjustment of the industry, and promoting its high-quality development.
China’s policy to control carbon emissions is not limited to curbing crude steel production by imposing restrictions on mills. It also involves reorganising a huge and sprawling industry through efficient consolidation and gradual concentration of steelmaking to achieve energy efficiency, SteelMint notes.
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