Shanghai-based Baosteel Group and Wuhan Iron and Steel Group, in the central province of Hubei, were combined to create China Baowu Steel Group, second only to ArcelorMittal. Its birth was marked with a ceremony in Shanghai attended by top national government and company officials.

The combined new entity will have total assets of 730bn yuan ($105.9bn) and 228,000 employees, a Baowu statement said.

The two firms' combined steel topped 60 million tons last year, according to data from the World Steel Association, exceeding that of previous national leader Hesteel.

Baosteel, which had been China's No. 2 steelmaker, has issued new stock to existing shareholders of Wuhan Iron and Steel to absorb the company.

The new group's focus will be to "improve the international competitiveness" of China's steel industry, said Ma Guoqiang, Baowu's chairman.

Read Full Article