It is reported that Taiyuan Iron and Steel Co Ltd has talked with several steel makers on the matter of mergers and acquisitions, but there was no material fruits in the end.

This time, TISCO may successfully restructure with Zhongyu Iron and Steel, which would become the first successful example in provincial steel consolidation, indicating that the restructuring plan were entering into essential process. Zhongyu Steel will realize steelmaking capacity combination with Taiyuan Steel Linfen Company once after M&As complete. The bilateral negotiation is moving toward normal track.

Mr Li Xiaobo board chairman with Taiyuan Steel expressed that the industrial consolidation is the only way out for Chinese steel enterprises, along with the national macro-control policies and rapid paces in washing out backward steel-making capacities.

Mr Hong Fake General Director of Shanxi Economic & Information Committee said "We would spare no efforts to promote the industrial regroupings between Taiyuan Steel and Zhongyu Steel, with a bid to speed up M&As plans in Shanxi province."

(Sourced from MySteel.net)
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