Anyang Steel & Shagang Group Plan Mixed Ownership Reform
Reuters reported that China's Anyang Iron and Steel Group has singed a letter of intent with the country's top private steelmaker Jiangsu Shagang Group to
Reuters reported that China's Anyang Iron and Steel Group has singed a letter of intent with the country's top private steelmaker Jiangsu Shagang Group to conduct a mixed ownership reform. Anyang Steel's unit, AnYang Iron & Steel informed Shanghai Stock Exchange that “Shagang intends to become the controlling shareholder of its parent group after a market-oriented reform. Details of the reform and whether Shagang Group will participant eventually still face uncertainties.”
The central China-based Anyang Steel is currently backed by the state assets regulator of Henan province. It has an annual steel production capacity of around 10 million tonnes. Meanwhile, Shagang Group, which ranked the sixth biggest steelmaker in the world in 2019, is able to produce over 40 million tonnes of steel per year.
The move comes as China calls for further concentration of the steel sector, aiming to consolidate 60-70% production in the hands of its top 10 steelmakers by 2025 from less than 40% now.