China’s Baowu Group Steel Capacity Edges 100 MnT Post Stake Acquisition at Magang

China Baowu’s production capacity is close to 100 MnT and is likely to become the world’s largest steel company.

China’s largest steel group announced new targets to further enhance its position in the industry. Chen Derong, Chairman of China Baowu Iron and Steel Group Co., Ltd. (hereinafter referred to as China Baowu), said on October 8 that after the recent restructuring of Maanshan Iron and Steel Group, the production capacity of China Baowu is close to 100 MnT.

He also said: “We strive to become the leader of the global industry. China is ranked number one in the global steel industry, China Baowu should become the leader of the global steel industry. “

China Baowu, a state-owned enterprise, and reorganized by the former Baosteel Group and Wuhan Iron and Steel Group in 2016, is the largest steel group in China.

In September this year, China Baowu and Maanshan Iron and Steel Group formally signed a restructuring agreement. More than four months ago, the State-owned Assets Supervision and Administration Commission of Anhui Province announced that it would transfer the 51% equity of the Maanshan Iron and Steel Group to China Baowu without compensation. After the transfer, the Anhui Provincial State-owned Assets Supervision and Administration Commission still holds the remaining 49% stake in Maanshan Iron and Steel Group.

According to the World Steel Association, China’s Baowu and Maanshan Iron and Steel Group’s crude steel output last year was 67.43 million tons and 19.64 million tons respectively, a total of 87.07 million tons. ArcelorMittal, currently ranked first in the global steel industry, produced a total of 96.42 million tons of crude steel last year.

Chen Derong once said that the joint reorganization of China Baowu and Maanshan Iron and Steel Group is a continuation of long-term cooperation between the two sides, and is also an important measure for the two sides to promote the supply-side structural reform of the steel industry, which will help to enhance the concentration of China’s steel industry and create international competitiveness as a world’s leading steel company.