It is reported that Shaanxi Province lately hammered out its industrial reviving plan to combine the existing three steelmakers into Shaanxi Iron & Steel Group aiming to expand the capacity to 10 million tonnes per year.

According to the plan, the three steelmakers are Shaanxi Hanzhong Iron & Steel Group Company, Shanxi Lueyang Iron and Steel Co Ltd and Shaanxi Longmeng Iron & Steel Co Ltd.

An official from Shaanxi Development & Reform Commission said the province only has these 3 mills of integrated capacity of over 5 million tonnes per year crude steel or steel products. Among them, Longmeng Steel possesses the largest capacity of some 3 million tonnes per year but is not able to act as the head in the combination.

In 2008, Shaanxi accumulatively yielded pig iron of 2.98 million tonnes, crude steel of 3.05 million tonnes and steel products of 5.01 million tonnes.

(Source: First Financial Daily)