It is reported that on October 12th an insider from Hubei based Chinese steelmaker Wuhan Iron and Steel Group Corporation said that the company has for a long time intended to engage in merger activity with western Chinese steelmaker Chongqing Iron and Steel Co Ltd but was rejected. In addition, a WISCO official has said the company is seeking to consolidate its position in central and western China through reorganization and acquisitions.

In 2004, WISCO had discussed a possible merger with Chongqing Steel. Although Chongqing Steel on October 11 publicly denied the possibility of restructuring between the two companies, a company official has said Chongqing Steel has been planning to engage in strategic restructuring in recent years.

At present, the total annual output of Chongqing Steel is 6 million tonnes and it plans to expand its output to 10 million tonnes by 2012. Meanwhile, Chongqing Steel has confirmed plans to develop five iron ore mines in China. The commencement of production at these mines will make Chongqing Iron and Steel 50% self-sufficient in iron ore supplies.

(Sourced from Steelorbis.com)
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