BIZCHINA / Weekly Roundup
New era dawns on iron & steel industry
By Zhang Yu (China Daily)
Updated: 2007-05-30 09:17
Shedding off unwanted production capacity is also "conducive to upgrading
the industry in terms of geographical deployment and product structure",
said the vice-premier.
China has more low-end steel supplies than it needs, while it still
depends on imports for high-end supplies used for making automobiles and
ships. Eliminating its low-end capacity can make the industry more
competitive, and in some cases, more capable of financing their
relocation programs, Zeng said.
Two years ago, two large I&S companies, Anshan and Benxi, both from
Liaoning Province, merged into the Anben Steel Group Co to become the
nation's largest steel maker.
In January 2007, however, Anben was overtaken by Shanghai-based Baosteel
Group, after Baosteel acquired 69.6 percent of Urumqi-based Bayi Iron and
Steel Co for 3 billion yuan.
Baosteel has also been in merger talks with Inner Mongolia-based Baotou
Iron and Steel Group.
And for the newly relocated Shougang Corp, formerly based in Beijing, it
is highly likely, industry sources say, that its first takeover targets
will be some of the more than 300 steel companies in its nearby Hebei
Province.
(China Daily 05/30/2007 page15)
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