North China-based steelmaker Puyang Iron and Steel Group has acquired Xinwuan Iron and Steel Group’s Hong Rong Iron and Steel Company by obtaining 70pc of its equity. Puyang Iron has indulged in a series of acquisitions and mergers to expand its steel capacity.
As a result of this strategic decision, Puyang’s overall annual crude steel capacity is likely to exceed 10mn mt.
Puyang’s crude steel output in 2020 was 6.3mn mt, while Hong Rong Steel’s output exceeded 2mn mt in 2020. Both the steelmakers are based in Hebei province.
In early 2021, Puyang steel acquired Xingtai Iron and Steel to add more than 2mn mt crude steel capacity.