Chinese steel manufactures, Ansteel Group, and Ben Gang have formally begun their merger. The production capacity of the new entity is estimated at 63mn mt of crude steel annually, with a target of 70mn mt per year by 2025.
The merged unit will operate under Ansteel’s name and aims to foray into iron ore production with 50mn mt per year capacity, and attain 300bn yuan ($46bn) in revenue by 2025. Ansteel will acquire a 51pc share in Ben Gang and become one of the largest producers globally.
In April, when the companies announced a restructuring plan to facilitate the merger, Ben Gang had a steel capacity of 20mn mt annually while Ansteel had 39mn mt.