I China Baowu Group Takes Over and to Manage Kunming Steel
The government of China’s Yunnan Province inked a cooperation agreement
with Chinese steel giant China Baowu Group, as announced by Yunnan Coal
& Energy Co., Ltd. On February 1, 2021, which is a subsidiary of
Yunnan-based steelmaker Kunming Steel. According to the agreement, 90
percent equity in Kunming Steel held by the State-owned Assets
Supervision and Administration Commission of the State Council (SASAC)
of Yunnan Province will be transferred to Baowu Group for free, while it
will continue to hold only the remaining 10 percent equity in Kunming
Steel.
Meanwhile, SASAC of Yunnan Province has authorized Baowu Group to manage
Kunming Steel for at most 12 months as parties will try their best to
complete the equity transfer in six months.
At the moment, the capacity of Kunming Steel is 7 million tonnes
annually.
II China’s Baowu to Acquire Shandong Iron & Steel
China Baowu Steel Group, the world’s largest steelmaker, is to add to
its considerable industrial clout by taking over Shandong Iron & Steel
Group, the tenth biggest steel mill in the world and China’s seventh
biggest, giving it an output of nearly 150 million tons of crude steel a
year.
“A planned restructuring may lead to changes in the controlling
shareholder and actual controller of Shandong Iron & Steel,” the Jinan,
northeastern Shandong province-based firm said. At present, the
State-owned Assets Supervision and Administration Commission of Shandong
Province holds a 70 percent stake.
III Ansteel Merged with Benxi Steel to Become World's Third-largest
Steelmaker
According to the announcement released by Ansteel on August 20, the
group has recently received a notice that the State-owned Assets
Supervision and Administration Commission of the People's Government of
Liaoning Province (hereinafter referred to as " The State-owned Assets
Supervision and Administration Commission of Liaoning Province") and the
People's Government of Liaoning Province jointly issued a notice
agreeing to the Ansteel Group's reorganization of the Benxi Iron and
Steel Group.
Ansteel will reorganize the 51% equity of Benxi Iron and Steel Group and
Benxi Steel will become a holding subsidiary of Ansteel Group.
According to statistics released by the World Steel Association in June
2021, in 2020, the crude steel output of Ansteel Group and Benxi Steel
Group was 38.19 million tons and 17.36 million tons, ranking the 7th and
19th in the world. Based on 2020 output, the combined output of Ansteel
and Benxi Steel will reach 55.55 million tons, surpassing Hebei Steel
Group's 43.76 million tons and ranking the third in the world.
IV China's Anyang Steel, Shagang Group Plan Mixed-ownership Reform
China's Anyang Iron and Steel Group has signed a letter of intent with
the country's top private steelmaker Jiangsu Shagang Group to conduct a
mixed-ownership reform, in a bid to further consolidate the ferrous
sector in the world's top steel producer.
In a filing to the Shanghai Stock Exchange by Anyang Steel's unit,
Anyang Iron & Steel 600569.SS said Shagang intends to become the
controlling shareholder of its parent group after a "market-oriented"
reform.
The move comes as China calls for further concentration of the steel
sector, aiming to consolidate 60-70% production in the hands of its top
10 steelmakers by 2025 from less than 40% now.
The central China-based Anyang Steel is currently backed by the state
assets regulator of Henan province. It has an annual steel production
capacity of around 10 million tonnes.
V
Liuzhou Steel Became the Controlling Shareholder of Guangxi Iron and
Steel
On December 24, Liuzhou Iron and Steel Co., Ltd released the "Liuzhou
Iron and Steel Co., Ltd. major assets reorganization implementation
progress notice". It is learned from the announcement that Liuzhou Iron
and Steel Co., Ltd. (hereinafter referred to as the "Company") will
increase the capital of Guangxi Iron and Steel Group Co., Ltd with
monetary capital. After the completion of the capital increase, the
company's capital contribution accounts for 45.83% of the registered
capital of Guangxi Iron and Steel. Meanwhile, the company is entrusted
to exercise the voting rights corresponding to 45.58% of guangxi Iron
and Steel held by Guangxi Liuzhou Iron and Steel Group Co., Ltd., with a
total voting right ratio of 91.41%. It becomes the controlling
shareholder of Guangxi Iron and Steel and includes Guangxi Iron and
Steel into the scope of consolidated financial statements.
VI Liuzhou Iron and Steel Group Restructures Guangxi Ferroalloy Company
On April 7, Liuzhou Iron and Steel Group and Laibin Municipal Government
held a signing ceremony for the free transfer of Guangxi Ferroalloy Co.,
Ltd’ s equity, marking that Guangxi Ferroalloy Company officially
jointed Liuzhou Iron and Steel Group with state-owned enterprises after
the reorganization of 11th Metallurgical Group. It is a new starting
point for the transformation and development of Guangxi Ferroalloy
Company.
VII
Jinan Steel Merges with Hebei Xinghua Steel
Hebei Xinghua Iron and Steel Co., Ltd underwent a shareholding change on
June 23, that Chen Maochun, the former 51 percent shareholder, withdrew
from the company and Wang Shuhua's shareholding increased from 49
percent to 100 percent and replaced Chen as the legal representative of
Hebei Xinghua Iron and Steel. Hebei steel enterprise Jinan Iron and
Steel Group completed the merger of Hebei private steel enterprise
Xinghua Iron and Steel.
VIII Xingtai Iron and Steel Completes Restructuring Work
On August 5, Puyang Iron and Steel and Xingtai Iron and Steel jointly
issued a letter to customers. On July 10, 2021, Hebei Puyang Iron and
Steel Co., Ltd. completed the equity reorganization of Xingtai Iron and
Steel. After the reorganization, Xingtai Iron and Steel will adhere to
the development path of special steel, and not change its business
strategy of vigorously developing automotive steel and high-end steel
grades. Through the association between strong enterprises, in virtue of
Puyang Iron and Steel's strong economic strength, excellent management
experience and strong industry resources, Xingtai Iron and Steel will be
more perfect and faster on the product quality, delivery speed,
after-sales service and other aspects.
IX Puyang Steel Acquires Another Mill in Hebei, Capacity Now above 10
Million Tonnes
Hebei Province-based Chinese steelmaker Puyang Iron and Steel Group
(Puyang Steel) has acquired another Hebei steelmaker, Hebei Xinwuan Iron
and Steel Group Hong Rong Iron and Steel Co., Ltd., obtaining 70 percent
of its equity.
In 2020, Puyang Steel’s annual crude steel output amounted to 6.3
million tonnes, while Hong Rong Steel’s annual crude steel output
exceeded 2.0 million tonnes. Puyang Steel has also a subsidiary, Xingtai
Iron and Steel, with more than 2.0 million tonnes of crude steel
capacity.
Accordingly, Puyang Steel’s overall annual crude steel capacity will
exceed 10 million tonnes.
X Yixin Steel and Jiangyang Steel Plan to Merge
Luzhou Provincial Economic and Information Commission has announced
that, in order to deepen supply-side reform and promote structural
adjustment and transformation of the local steel industry, Sichuan
Province-based Luzhou Yixin Iron and Steel Co. and Sichuan-based
Jiangyang Iron and Steel Co. plan to merge, forming a new company called
Xinyang Iron and Steel Company. Accordingly, the electric furnaces of
Yixin Iron and Steel Co. and Jiangyang Iron and Steel Co., with annual
capacities of 1.92 million tonnes of crude steel and 600,000 tonnes of
crude steel respectively, will be torn down and replaced by two 100-ton
electric furnaces, giving the new steel company an annual crude steel
capacity of 2.0 million tonnes.
XI Xining Special Steel: The Controlling Shareholder Plans to Introduce
Strategic Investors and Other Major Issues
Xi'ning special steel announced that the controlling shareholder Xi'an
iron and Steel Group plans to introduce strategic investors, implement
strategic restructuring, and simultaneously implement the overall
environmental relocation work. The introduction of strategic investors
planned by Xi'an iron and steel group may lead to the change of the
actual controller of the company. As the matter is still in the planning
stage, the relevant scheme has not yet been determined, and the
subsequent decision-making and approval procedures need to be performed
by the relevant competent departments.
XII Delong’s Tangshan Steelwork Mergers with Jiujiang Wire
Delong Group, a privately-owned Chinese steel producer with steel plants
in Tangshan of Hebei and Tianjin, both in North China, will merge its
steelworks in Tangshan with another local privately-owned wire rod
producer - Qian’an Jiujiang Wire Rod Co (Jiujiang Wire) to help with
“further integration of Tangshan steel industry”, according to the
company releases on August 3-4. |