International Steel Mills
September 20, 2016
China Steel Merger Creates 2nd Largest Producer in World
Written by Sandy Williams
Baosteel and Wuhan Iron and Steel (WISCO), the fifth and eleventh largest steel manufacturers in the world, are merging to form a new entity, China Baowu Iron and Steel Group. The combination of assets will give the new company an estimated 60 million tons of capacity, placing it as second largest producer behind ArcelorMittal.
Both companies have struggled with plummeting profits in the past year as domestic demand dwindled and trade suits slowed exports. Shanghai Daily estimates that the market value of the new group will be $16.3 billion with total assets of approximately $105 billion.
