TOP STEELMAKERS 2017: Asian mega-merger consolidates position of steel industry

Of all the major developments in the Asian steel industry last year, arguably the most important one has to be the merger between Baosteel and Wuhan Iron & Steel (Wugang) – two of the biggest steelmakers in China.

Of all the major developments in the Asian steel industry last year, arguably the most important one has to be the merger between Baosteel and Wuhan Iron & Steel (Wugang) – two of the biggest steelmakers in China.
Talk about consolidation in the Chinese steel industry had been circulating for years, but rumours about big mergers repeatedly failed to materialise into real transactions.
This time, however, official announcements about the potential deal were made at the end of June last year by both Baosteel and Wugang – and as soon as early December, the companies were holding an opening ceremony in Shanghai.

With 228,000 employees and assets totalling 730 billion yuan ($107 billion), the new entity, called the Baowu Steel Group, was expecting to generate an annual revenue of at least 330 billion yuan ($48 billion), it announced back...

Published

Juan Weik

June 06, 2017

20:06 GMT

Singapore