In a pivotal development for the Chinese steel industry, the State Administration for Market Regulation has officially granted approval for Baowu Group's acquisition of Shandong Iron and Steel Group (Shangang), as announced in the latest release on the administration's official website.
Baowu Group, a major player in the global steel market, achieved a remarkable production of 131.84 million metric tons of crude steel in 2022, securing the top spot in global steel production volumes according to data from the World Steel Association (worldsteel). With an ambitious target in sight, Baowu Group aims to reach an annual crude steel capacity of 200 million metric tons by the year 2025.
Shangang, a state-owned steelmaker based in Shandong Province, contributed significantly to China's steel output by producing 29.4 million metric tons of crude steel in 2022. This placed Shangang at the seventh position in China and the eleventh globally in terms of steel production.
Shangang specializes in the production of steel plate, strip, section, special steel, and construction steel, boasting an impressive annual crude steel capacity exceeding 30 million metric tons.
The approval by the State Administration for Market Regulation comes with the reassurance that the acquisition aligns with regulatory guidelines, affirming that the integration of Shangang into Baowu Group's portfolio will not violate anti-monopoly laws. This regulatory nod is anticipated to pave the way for a seamless integration process, consolidating Baowu Group's position as a formidable force in the global steel industry and fostering continued growth and innovation in the sector.
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