December 04, 2008

State Council called to program mergers of steel enterprises

In” Merger and Acquisition of Iron and Steel Industry and Enterprise Development Seminar “on November 26th 2007 Mr Luo Bingsheng, the executive vice chairman and secretary general of China Iron & Steel Association indicated that CISA has already suggested the State Council to program mergers of steel enterprises and to accelerate the rise of industrial concentration.

Mr Bingsheng advised that the national program should take advantages of four biggest steel groups including Baosteel, Anben Steel, Shougang and Tangsteel and Wisco in aspects such as capital, management, technology etc in order to construct a super sized and international competitive steel group in the world.

He said that “The government should also provide support to the merger of other big sized steel enterprises and close down outdated and low level capacities.”

He added that “Additionally, the national program should regulate the rate of progress of the merger and confirm that crude steel output in first ten largest steel enterprises takes 50% in total output in China by 2010.”