Bengang signs merger with Beitai Steel
Shanghai. May 21. INTERFAX-CHINA - Liaoning Province-based Benxi Iron and Steel (Group) Co. Ltd. (Bengang) plans to merge with another Benxi City-based steel mill, Beitai Iron and Steel Group Co. Ltd., with each party holding an equal stake in the new company formed after the merger, state media reported on May 20.
The China Business News reported that the newly formed company will then be rolled into Anshan Iron and Steel Group Corp. (Angang), one of China's largest steel companies. This will increase Angang's production capacity by 10 million tons to over 50 million tons, according to a senior Beitai Steel employee.
Beitai Steel has an annual production capacity of 8 million tons of pig iron, 8.5 million tons of steel billet and 10 million tons of steel products. The company focuses mainly on steel wire, rod and coil production.
Bengang has an annual production capacity of 10 million tons of pig iron, 10 million tons of crude steel, and 10 million tons of steel products.
The two sides began discussing the merger in 2000. Progress has been slow because Bengang, which is owned by the Liaoning provincial government, and Beitai, owned by Benxi municipal government could not reach a consensus on which province would receive the post-merger tax revenues.