Related News
Baosteel to merge with large rivals
By Helen Yuan |
February 21, 2009, Saturday
|
Print Edition
Print Edition
BAOSTEEL Group Corp, China's biggest steel producer, will take over two rivals as part of the nation's plan to create bigger steel makers to gain bargaining power for iron ore, according to the China Iron and Steel Association.
Baosteel will take over Ningbo Iron and Steel Group and Baotou Iron and Steel Group, Chi Jingdong, the association's secretary-general, told an industry group in a closed meeting on Thursday. Bloomberg News received a copy of the speech yesterday. China, which produces one-third of the world's steel, is pushing for consolidation in the industry to boost its competitiveness and raw material purchasing power. The government is implementing a 4-trillion-yuan (US$586 billion) stimulus package to boost economic growth.
"The global recession will help speed up industry consolidations," said Luo Wei, a Shanghai-based analyst with China International Capital Corp. "Boosting the concentration will increase steel makers' profit and their pricing power."
Chinese steel makers are seeking the first reduction in seven years for benchmark contract iron ore prices as demand falls.
The government will also push Anben Steel Group, China's fourth-biggest, to merge with Panzhihua Iron and Steel Group, while Taiyuan Iron and Steel Group, the biggest stainless steel maker, will combine with rivals in Shanxi, Chi said.
Baosteel will take over Ningbo Iron and Steel Group and Baotou Iron and Steel Group, Chi Jingdong, the association's secretary-general, told an industry group in a closed meeting on Thursday. Bloomberg News received a copy of the speech yesterday. China, which produces one-third of the world's steel, is pushing for consolidation in the industry to boost its competitiveness and raw material purchasing power. The government is implementing a 4-trillion-yuan (US$586 billion) stimulus package to boost economic growth.
"The global recession will help speed up industry consolidations," said Luo Wei, a Shanghai-based analyst with China International Capital Corp. "Boosting the concentration will increase steel makers' profit and their pricing power."
Chinese steel makers are seeking the first reduction in seven years for benchmark contract iron ore prices as demand falls.
The government will also push Anben Steel Group, China's fourth-biggest, to merge with Panzhihua Iron and Steel Group, while Taiyuan Iron and Steel Group, the biggest stainless steel maker, will combine with rivals in Shanxi, Chi said.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
