Wisco and Baosteel Announce the Largest Restructuring Plan in Chinese Steel Industry

Baosteel and Wisco are both large steel manufacturers in China. The average annual production of each company weighs tens of millions tons. The recent announcement of the “restructuring plan” for both companies this time will be the largest restructuring case in Chinese steel industry.
It is reported that after the merger of these two companies, the total production of crude steel of the company under its new name will reach 60.7 million tons, with the scale only second to ArcelorMittal, making it the largest steel manufacturer in China. The current production of crude steel in China totals 0.804 billion tons (representing 7.5% of the market share).
According to an expert from the industry, the current steel production has been in overcapacity, so merger for restructuring should be in the must-to-do list. The merger of Baosteel and Wisco can generate capital advantages for both companies. There will be no competition between Wisco and Baosteel, which is actually good for increasing product prices.