Deputy Minister Mr Su Bo of Ministry of Industry and Information Technology disclosed that the steel industry should promote its cross regional mergers & acquisitions course, overseas combination and investment in a bid to enhance industrial concentration during 12th five-year plan period.

Mr Su said that there were lots of problems existing China industrial economic structure, like low concentration, low professional level and lack of large scaled enterprises or groups etc.

The data showed that there're more than 500 crude steel producers in China and the averaged output scale over 1 million tonnes with top 10 producers output accounting for 48% of the total while the figures came at 60% in S Korea with the same comparison.

At present, only large scaled steel enterprises like Baosteel, Angang and Shougang Group have realized cross regional regroupings.

(Sourced from China Securities Journal)