China’s Baowu Steel Group (Baowu Group), one of the world’s largest steel producers with an annual crude steel production capacity of 100 million mt, announced that it plans to acquire the state-owned Shandong Iron & Steel Group (Shangang).
With the acquisition, the company’s total production capacity will exceed the targeted 150 million mt, exceeding the production capacity of its global rival ArcelorMittal.
Baowu Group produced 115 million mt of crude steel last year, while Shangang produced a total of 31 million mt of crude steel. In addition, Shangang’s total production capacity stands at around 38 million mt per year.
With the consolidation to be achieved in the Chinese steel industry, it is aimed to ensure efficiency in production and reduce carbon emissions. Baowu plans to reduce its carbon emissions by 30% by 2030.