China Baowu Steel Group agreed on 21 August to take a 51% stake in Taiyuan Iron & Steel Group, known as TISCO, in a deal that moves China's largest steelmaker past 100 million tonnes a year of crude steel capacity. Shanxi's state-owned assets supervisor, which owned all of TISCO, signed an agreement to transfer the stake to Baowu free of charge. Through TISCO, Baowu will indirectly control 62.7% of the listed stainless producer Tisco Stainless. The combined crude steel capacity of the two groups was put at 111 million tonnes a year. In 2019 Baowu produced 95.47 million tonnes of crude steel and TISCO produced 10.86 million tonnes, giving a combined 106.32 million tonnes. TISCO, based in Taiyuan in Shanxi province, is China's second-largest stainless steel producer, with annual steel capacity of about 12.94 million tonnes, including 4.5 million tonnes of stainless steel. The deal still required approval from the central state-assets regulator, but it was seen as part of Beijing's long-running push to consolidate the steel industry into fewer, larger groups.
Source: SteelOrbis — https://www.steelorbis.com/steel-news/latest-news/baowu-group-takes-over-tisco-brings-its-total-capacity-above-100-million-mt-1160254.htm
Photo: Wikimedia Commons (freely licensed).