Anshan Iron and Steel Co., Ltd. assembles "Three Delta Steels" to layout the "big triangle" of the steel industry (Figure)

With the opening of the "12th Five-Year Plan", the domestic steel industry has also accelerated the pace of mergers and restructuring. After a sudden suspension of trading for several days, today, Sangang Dawning announced that the restructuring plan of the company's controlling shareholder, Sangang Group and Angang Group, had recently been reported to the Ministry of Industry and Information Technology. If the restructuring is completed successfully, the company's actual controller will be changed to Anshan Iron and Steel Group.

Steel Industry Information Click here to view all news photos This is another major move of Anshan Iron and Steel Group restructuring in the past few days. Just yesterday, the suspension of nearly a month and a half of *ST vanadium-titanium also resumed and announced that it intends to replace the steel-related business assets owned by it with Angang Group’s mining equity. This also means that the reorganization of Angang and Pangang, which have been in operation for nearly three years, has finally taken a substantial step.

At this point, the southeast, southwest, and northeast, Anshan Iron and Steel Group's merger and reorganization of the "big triangle" built on the territory of China's steel industry has become visible.

After an interval of 5 years, Anshan Iron and Steel Company restarted the collection of Sangang Anshan Iron and Steel Group restructuring of Sangang Group is not a temporary remark. As early as June 29, 2006, Anshan Iron & Steel had signed a cooperation framework agreement with the Fujian provincial government. At that time, Angang planned to build 5 million tons of steel mills along the Fujian coast and plans to restructure Fujian Sangang.

However, the aforementioned cooperation framework agreement has not been described below. According to informed sources, this was mainly because Angang later failed to perform technical and management output and personnel dispatch for Fujian Sansteel's plate; at the same time, Fujian Ningde built a dream of building a large steel plant along the coast, and later because of excess capacity in China’s steel industry, it was unable to Shelve again for approval.

After an interval of more than five years, Angang suddenly restarted the operation of the collection of Sansteel Group in the recent days. Today's announcement of Sansteel Dawn announced that the company received a notice from the controlling shareholder Sansteel Group, according to the actual controller of the company Fujian Metallurgical (Holdings) The limited liability company informed that Fujian Provincial People's Government and Anshan Iron and Steel Group had jointly reported to the Ministry of Industry and Information Technology on December 16, 2010 the “Restructuring Plan for Anshan Iron and Steel Group Co., Ltd. and Fujian Sansteel (Group) Co., Ltd.”.

It is reported that the above reorganization plan is based on the State Council’s “Several Opinions on Supporting Fujian Province in Accelerating the Construction of the Economic Zone on the Western Coast of the Taiwan Strait” and the Ministry of Industry and Information Technology’s “Implementation of the Opinions of the General Office of the State Council on Further Enlarging Energy Saving and Emission Reduction to Accelerate Structural Adjustment of the Steel Industry”. The spirit of the "Notice" put forward specific opinions on the cooperation and restructuring of Anshan Iron and Steel Group and Sansteel Group for implementing the national steel industry policy.

Sangang Shuguang stated that the current reorganization plan is still subject to the approval of the Ministry of Industry and Information Technology. Once approved by the Ministry of Industry and Information and implemented, the controlling shareholder of Sangang Group will eventually be changed to Anshan Iron and Steel Group.

The layout of the "triangle triangle" has gradually emerged. It is reported that Fujian is one of the few provinces in the country where steel is in short supply. At present, Fujian Province has about 10 million tons of steel production capacity, while the normal market demand reached 15 million tons, the province's supply and demand gap 5 million tons. Therefore, for Angang, which has been hanging over its head with a sword with overcapacity, the temptation of this market is no doubt small.

At the same time as the staking "market", another Anshan Iron and Steel Group is working to create a large-scale mineral resource base in the southwest - just yesterday, Panzhihua Iron and Steel and Anshan Iron and Steel Group, which had been operating for three years, formally announced the start of substantive Integration work.

*ST Vanadium and Titanium announced on December 16 that it intends to replace its assets with steel-related business assets owned by Angang and 100% of Anchanggang, 100% of Angang Hong Kong and 100% of Anba. Among them, the major asset of Angang Hong Kong is 35.92% equity of Jinda Bi, a listed company of the Australian Stock Exchange. The main asset of the An'ao Company is a 50% stake in the Australian mining company Carrara, which will hold another 50% of Carrara.

After the completion of this integration, Anshan Iron and Steel Group will focus on the main steel industry, and *ST vanadium and titanium's main business will be transformed into iron ore mining, titanium concentrate purification, production and processing of vanadium and titanium products, vanadium and titanium extension products R&D and application business.

This also means that, with the Northeast as the base camp, southeast and southwest of the country, with resources in hand and market expansion, Angang has built a “big triangle” on the competitive landscape of the Chinese steel industry.