China’s two major steelmakers, Ansteel Group and Bengang Group, have signed an agreement to initiate their merger and restructuring, a move that will create the world’s third-largest steel producer.
Under the agreement, the State-owned Assets Supervision and Administration Commission of Liaoning Province — the owner of Bengang — will transfer a 51% controlling stake in the company to Ansteel. As a result, Bengang will become a subsidiary of Ansteel.
Established in 1916 and 1905 respectively, Ansteel and Bengang are both based in Liaoning Province in Northeast China.
Following the merger, Ansteel will have an annual crude steel production capacity of 63 million tonnes, ranking third globally behind China Baowu Steel Group and Luxembourg-based ArcelorMittal.
According to a statement released by Ansteel, the merger will promote consolidation in the steel industry, accelerate its high-quality development, and help build a world-class steel enterprise.
