China’s biggest private steel producer Jiangsu Shagang Group signed an agreement with the Henan provincial government for investing CNY 14.8 billion (USD 2.25 billion) in buying up and modernising steel mills in Shuiye county in the Yindu district of Anyang city in Henan province in a project to create a rebar and wire rod production base. Led by Shagang’s Henan based unitAnyang Yongxing Special Steel Co Ltd, the project targets annual iron capacity at 4.94 million tonnes and steel capacity at 5.5 million tonnes when complete. The company did not provide potential acquisition targets names, but said private mills in the Anyang city area would be involved. Anyang Yongxing currently has iron and steel capacity of 1.85 million tonnes and 2.22 million tonnes, respectively.
Henan produced 32.99 million tonnes of crude steel in 2019