Baowu Steel Aiming to Cross 150 Million Tonnes Steel Capacity
Chinese media had reported in January that China’s seventh-biggest steelmaker Shandong Iron and Steel Group with 31.11 million tonnes would merge into Baowu Steel Group to increase steel production capacity to 155 million tonnes per year. Shandong Iron and Steel Co Ltd informed Shanghai Stock Exchange on 14 July 2021 that “The state assets regulator of eastern China’s Shandong province was working with Baowu on a strategic restructuring of parent company Shandong Iron and Steel Group. This matter may lead to a change in the company’s controlling shareholder and actual controller.”
Evolution of Baowu Steel Group
In 1978, as part of the Chinese government's reform and opening, Chinese paramount leader Deng Xiaoping sought to develop large-scale steel production in China. The government planned for a large integrated steel production facility to be located near the port of Shanghai in Baoshan District, a suburb of Shanghai.
In1998, the former Baoshan Iron and Steel (Group) Corporation absorbed the Shanghai Metallurgical Holding Group Corporation and the Shanghai Meishan Group to form Shanghai Baosteel Group Corporation. The new conglomerate was the largest steel producer in the country with annual steel production of nearly 20 million tonnes.
In 2004, the listed subsidiary acquired Meishan Iron and Steel from Baosteel Group via Shanghai Meishan Group.
In 2007 Baosteel Group acquired the majority stake of Xinjiang Ba Yi Iron and Steel Group, which was the parent company of Ba Yi Iron and Steel.
In 2011, Baosteel Group acquired 51% stake of Guangdong Shaoguan Iron and Steel Group
Baowu Steel Group was formed with the merger of Baosteel and Wisco in 2016 that gave it a capacity of 59 million tonnes per year. Its 2019 acquisition of Maanshan Iron and Steel raised its capacity to 90 million tonnes per year.
In 2019, China Baowu Steel Group acquired 51% stake of Masteel Group from of Anhui Provincial People's Government
Baowu completed its acquisition of the 10 million tonnes per year Kunming in 2021.
Major Subsidiaries & Steel plants
Baoshan Iron and Steel
Shanghai First Iron and Steel Co Ltd
Shanghai Second Iron and Steel Co Ltd
Shanghai Pudong Iron and Steel Co Ltd
Shanghai Fifth Iron and Steel Co Ltd
Guangxi Iron and Steel Group
Wuhan Iron and Steel Company
Zhanjiang Iron and Steel
Shanghai Meishan Iron and Steel - 77%
Guangdong Shaoguan Iron and Steel - 51%
SGIS Songshan Co Ltd - 53%
Xinjiang Ba Yi Iron and Steel Group - 77%
Xinjiang Ba Yi Iron and Steel - 50%