Tuesday, September 8, 2009

Shandong Acquires Rizhao Iron And Steel

A long-awaited acquisition involving two steel firms in China's eastern province of Shandong is complete.

Shandong Iron and Steel Group has acquired a 67 percent stake of Rizhao Iron and Steel. The deal will generate the third largest steel maker in China by output capacity. After the move, Rizhao Steel will become the most profitable asset of Shandong Steel.

The consolidation is part the Shandong provincial government's plan to streamline its steel sector, which is one of the country's largest and most fragmented.

Currently, Baoshan Iron and Steel ranks first among Chinese steel makers, followed by Hebei Steel Group.

source: CCTV

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