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Steel mills merge in China's Yunnan province-The 19th Guangzhou Die-casting, Foundry & Industry Furnace Exhibition
8/1/2017 Die-casting expo-foundry expo |
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Argus reported that three Chinese steel companies in the southwest province of Yunnan have merged to form a 6 million tonne per year producer, in a rare sign of the country''s long-promised consolidation process.
Private-sector Huixi Metal Casting Products, Fuyu Iron and Steel and Yu Kun Iron and Steel have merged, with the new company to be called Yu Kun Iron and Steel. All three mills operate in the city of Yuxi.
Beijing has long pushed mergers of steel companies as a major policy goal, as the government seeks to shut down smaller mills that it blames for producing low quality products and adding to pollution.
But the consolidation process has progressed slowly, mainly because of large debts at some companies. And the high profits made by mills since March 2016, especially for long products, have also reduced the economic imperatives for the mergers.
The only major tie up since 2016 has been the merger of Baosteel and Wuhan Iron & Steel, both of which are controlled by the central government. The two companies formed the Baowu group in September last year, creating the world''s second largest steel producer behind Luxembourg-based ArcelorMittal.
-The
19th Guangzhou Die-casting, Foundry & Industry Furnace Exhibition
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