China to quicken mergers and reorganizations in steel sector

Lesedauer: min

The Ministry of Industry and Information Technology of China released the 12th Five Year Plan for the steel industry on November 7, saying China will keep enhancing steel industrial concentration, accelerating mergers and reorganizations among steel companies and encouraging private capital to get involved in state owned steel companies' mergers and reorganizations.

According to the plan, China will reduce the number of steel companies sharply and the top 10 steel enterprise groups will enlarge their steel output from 48.6% to around 60% of China total steel output.

The plan showed China will use Baoshan Iron &, Steel Co Ltd Angang Steel Company Limited, Wuhan Iron and Steel Company Limited and Beijing Shougang Co Ltd as drives to form 3 to 5 companies with core competitiveness and international clout.

China is set to mainly promote mergers and reorganizations of Angang and Pangang Group, Benxi Steel Group and Fujian Sangang of Baoshan Iron & Steel and steel companies in Guangdong of Wuhan Iron and Steel and steel companies in Yunnan and Guangxi and of Beijing Shougang and steel companies in Jilin, Guilin and Shanxi.

Sourced from SinoCast Daily Business Beat via COMTEX