<p>Chinese state owned steel giant Baowu Group is taking majority control of a steel company in the Jiangxi province, fast-tracking the company's consolidation plan and boosting production capacity. Chinese steel producer Xinyu Iron & Steel Co Ltd announced that Jiangxi Province State-owned Capital Operation Holding Group Co Ltd, which holds 100% equity in Xinsteel Group, the controlling shareholder of Xinyu Steel, has signed a free transfer agreement with major Chinese major Baowu Group. The move will transfer controlling ownership of 51% in Xinyu Steel to the central State-owned Assets Supervision and Administration Commission, which controls Baowu from the Jiangxi provincial. The Jiangxi provincial government will hold the remaining 49% stake in Xingang Group after Baowu takes the majority share. Xinyu Steel said that the free transfer needs further approval from the relevant government department, and so some uncertainty regarding the transfer still exists.</p><p>Xinsteel Group is located in Xinyu city in Jiangxi Province, and has an annual crude steel capacity of 10 million tonnes.</p><p>Recently, Baowu Steel announced that it will target a crude steel output of 200 million tonnes by the end of 2025 via the acquisition of more steel enterprises and the move will take Baowu one step closer to its target. The company is also in the process of taking over state-owned Shandong Iron & Steel Group, Shangang Group, with annual crude steel production of about 28 million tonnes. Following the absorption of Xingang Group and Shangang Group, Baowu’s annual crude steel output will climb 160 million tonnes accounting for 15%-16% of China's total steel production, up from 12% currently.</p><p>China's top 10 steelmakers are likely to account for about 46% of the country's production by end-2022, up from about 41% at the end of 2021 and 37% at the end of 2020</p>
<p>Chinese state owned steel giant Baowu Group is taking majority control of a steel company in the Jiangxi province, fast-tracking the company's consolidation plan and boosting production capacity. Chinese steel producer Xinyu Iron & Steel Co Ltd announced that Jiangxi Province State-owned Capital Operation Holding Group Co Ltd, which holds 100% equity in Xinsteel Group, the controlling shareholder of Xinyu Steel, has signed a free transfer agreement with major Chinese major Baowu Group. The move will transfer controlling ownership of 51% in Xinyu Steel to the central State-owned Assets Supervision and Administration Commission, which controls Baowu from the Jiangxi provincial. The Jiangxi provincial government will hold the remaining 49% stake in Xingang Group after Baowu takes the majority share. Xinyu Steel said that the free transfer needs further approval from the relevant government department, and so some uncertainty regarding the transfer still exists.</p><p>Xinsteel Group is located in Xinyu city in Jiangxi Province, and has an annual crude steel capacity of 10 million tonnes.</p><p>Recently, Baowu Steel announced that it will target a crude steel output of 200 million tonnes by the end of 2025 via the acquisition of more steel enterprises and the move will take Baowu one step closer to its target. The company is also in the process of taking over state-owned Shandong Iron & Steel Group, Shangang Group, with annual crude steel production of about 28 million tonnes. Following the absorption of Xingang Group and Shangang Group, Baowu’s annual crude steel output will climb 160 million tonnes accounting for 15%-16% of China's total steel production, up from 12% currently.</p><p>China's top 10 steelmakers are likely to account for about 46% of the country's production by end-2022, up from about 41% at the end of 2021 and 37% at the end of 2020</p>
