According to a report by Shanghai Securities News citing sources from Laiwu Steel and local government of Shandong province Laiwu Steel's deal with Arcelor and the recent regrouping pact with Jinan Steel are in smooth progress.

Arcelor had signed a share purchase deal with Laiwu Steel to buy 38.41% shares in the latter's listed entity for RMB 2.085 billion yuan in February 2006 to become equal shareholder as Laiwu Steel. After approval from Shandong provincial government, the share sales deal between Laiwu Steel and Arcelor has been submitted to relevant central government authorities for final examination and approval.

Laiwu Steel said in a statement in early August 2006 that it would merge with Jinan Steel to create Shandong Iron and Steel Group the second largest steel conglomerate in China after Baosteel. As per report is undergoing regrouping and will be incorporated by the end of October.