The next big merger in iron and steel...

We came across a discussion recently [see http://english.caijing.com.cn/2008-02-25/100049400.html] of the development plans of China’s Shagang Iron and Steel. The Shagang Group produced close to 32 million tonnes of crude steel in 2011, making it the 7th largest steelmaker in the world. The discussion talked about the growth plans of Shagang, and mentioned the possibility of cooperation or merger between the Shagang Group and Shanghai Baosteel. Baosteel produced ~43 million tonnes of steel in 2011, making it the world’s second largest steelmaker.

 

Merger of Shagang and Baosteel would create a Chinese steel giant with steel production of over 75 million tonnes. This volume of steel output would start to approach that of ArcelorMittal  - the world’s largest steelmaker – who produced 97 million tonnes of steel in 2011.

 

So, could a Baosteel–Shagang merger be the next step in the consolidation of the global steel industry?

 

blogger@steelonthenet.com

Steel company history

We have posted some pages with company history for selected steelmakers in the Knowledge Base section of our website. These pages cover historic developments [including mergers, acquisitions where relevant] at ArcelorMittal (incl Mittal Steel), Baosteel, British Steel (later Corus), Evraz Group, Nippon Steel, Nucor, POSCO and the Riva Group. Further historical profiles will follow in the coming weeks.

 

blogger@steelonthenet.com