China's Hebei province confirms launch of merged entity Hebei Iron & Steel

China to launch Hebei Steel, new industry leader.
Hebei Steel Group, the result of a merger of two local steel mills, will be officially launched on Wednesday to create a new industry leader and improve the sector's efficiency and production, state media reported. Hebei's provincial government has agreed to merge Tangshan Steel Group and Handan Steel Group to create the new Hebei Steel Group, which will become China's No. 1 steel maker by output, overtaking Shanghai-based Baosteel Group, the official China Securities Journal reported. Baosteel Group owns a Shanghai-listed arm, Baoshan Iron and Steel Co. The new Hebei Steel Group will have annual output of nearly 32 million tonnes of iron and steel, more than that of Baosteel Group, the newspaper said, citing unidentified sources familiar with the situation. "According to the long-term strategic plan by the Hebei province government, the new (Hebei Steel) group will have annual production of 50 million tonnes of iron and steel, making it a world-class iron and steel enterprise," the newspaper said without giving a timeframe. "Without the merger, Hebei cannot compete against domestic rivals and expand out of China," it added. The merger and the creation of Hebei Steel Group is a first step towards helping Henan province solidify its position as China's top steel-producing province, the newspaper said. Wang Yifang, general manager of Tangshan Steel Group, is the chief of the government-led team in charge of the creation of Hebei Steel Group and Liu Rujun, chairman of smaller Handan Steel Group, is Wang's deputy, said the newspaper. The top management of the new Hebei Steel Group will be announced soon, it added.