China Baowu reorganized Maanshan Iron and Steel Group to build a billion tons of steel group
On May 31, 2019, China Baowu Iron and Steel Group Co., Ltd. (hereinafter referred to as China Baowu) signed a free transfer agreement with the Anhui Provincial State-owned Assets Supervision and Administration Commission. Anhui State-owned Assets Supervision and Administration Commission transferred 51% of the shares of Masteel (Group) Holdings Co., Ltd. (hereinafter referred to as Masteel Group) to China Baowu free of charge.
This reorganization is an important measure to implement the CPC Central Committee and the State Council on promoting the healthy development of China's iron and steel industry, deeply promoting the structural adjustment of the state-owned economy, implementing supply-side structural reform, and speeding up the merger and reorganization of overcapacity industries. to meet the objective requirements of serving the country's "Yangtze River economic belt" strategy and strengthening the coordinated development of regional economy, it is the key measure to cultivate world-class enterprise groups with international competitiveness.
China's Baowu strategic plan clearly proposes to "become a leader in the global steel industry" as the vision, and strive to build "100 million tons of Baowu." The reorganization of China Baowu and Maanshan Iron and Steel Group will drive Maanshan Iron and Steel Group to achieve leap-forward development, strengthen the state-owned economy of Anhui Province, promote the development of steel and related industries, and promote the transformation and upgrading of Anhui's industrial structure and achieve higher quality development. On the other hand, it will promote the great vision of China Baowu “becoming a leader in the global steel industry” and further build a world-class technological innovation, industrial investment and capital operation platform in the steel industry.
China Baowu was jointly reorganized by the former Baosteel Group Co., Ltd. and Wuhan Iron and Steel (Group) Co., Ltd., was launched on December 1, 2016. it has a steel production capacity of 70 million tons, ranking first in China and second in the world. It is the most modern and competitive iron and steel joint venture in China. China Baowu is a pilot enterprise of the state-owned capital investment company. In 2018, the total assets were 711.8 billion yuan, the crude steel output was 67.25 million tons, the operating income was 438.6 billion yuan, and the total profit was 33.84 billion yuan, ranking 162nd in the Fortune 500.
Maanshan Iron and Steel Group, located in Maanshan City, Anhui Province, is a very large iron and steel joint venture in China, which is authorized by the Anhui Provincial Government. Maanshan Iron and Steel Group has total assets of 97.004 billion yuan in 2018, crude steel output of 19.64 million tons, operating income of 91.8 billion yuan, and a total profit of 8.945 billion yuan. Maanshan Iron and Steel Group has a production scale of 20 million tons of steel, forming four major iron and steel production bases of Maanshan Iron and Steel Co., Ltd., Yangtze River Iron and Steel Company, Hefei Company and Wharton Company.
The above reorganization shall also be submitted to the State Assets Supervision and Administration Commission of the State Council for approval and shall perform such procedures as antitrust examination, exemption from offers at home and abroad, and so on.
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