October 07, 2008

Anshan and Benxi steel to merge in 2008

China Knowledge cited Mr Yu Tianchen president of Benxi as saying that the long awaited merger of Anshan Iron & Steel Group Co and Benxi Steel Group is expected to start this year.

He said that the merger proposal is now subject to regulatory approval that is expected to be granted within the year. In fact, the two steel makers were merged in 2005, but still keep independent operations due to some historical and structural reasons.

Anshan Iron & Steel Group is China's second largest steel producer. After the incorporation completed, the combined production capacity of the new entity will press on towards Baosteel Group, the largest steel company in China.