Domestic

China's Anshan Steel plans to acquire small rival

(Agencies)
Updated: 2010-12-17 09:56

SHANGHAI - China's Anshan Steel Group plans to take over smaller rival Fujian Sangang Group in a further move to speed up the domestic steel sector's restructuring, Reuters reported Thursday, citing a filing to the exchange of Sangang's listed arm Sansteel Minguang.

China has been actively pushing for consolidation of the country's fragmented steel sector, aiming to create three to five majors with greater competitiveness, it said.

Anshan Steel received regulatory approval in late May to take over State-owned Panzhihua Steel in Sichuan, paving the way to forge the biggest steelmaker in China.

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The acquisition proposal is subject to approval from the China's Ministry of Industry and Information Technology.

Sangang has an annucal production capacity of 5 million tons and produces mainly rebar and wire rod for construction sector, according to the report.