China has created a new steel giant

The company was formed after the merger of Baosteel Group and Wuhan Iron and Steel Corporation, and was named Baowu Steel Group. Fixed assets are estimated at $ 106 billion. The group employs 228 thousand people who can ensure the production of about 60 million tons of steel.

This means that in the local market, the new company has displaced Hesteel from the first place, which was second only to ArcelorMittal in production. Ma Guoqiang, the former head of Wuhan Iron and Steel, became president of the new company. The first general meeting of the new company will be held this month.

China is trying to consolidate the industry. According to plans, by 2025, 60 percent of local production should come from the 10 largest companies. It currently accounts for less than 40 percent of steel.

China has eliminated some of its production capacity, but at the moment does not mean that there is a real decline in capacity. Over the past 5 years, plants with a total capacity of 90 million tons have been closed, and another 100 million are still awaiting closure, but new plants are still being created.