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History of Benxi Steel

History of Benxi Iron & Steel History of Benxi Steel

In 2019, the Benxi Steel Group was the 19th largest steelmaker in the world, producing ~16 million tonnes (mt) of steel. The company was acquired by Anshan in 2021.

Benxi Steel Timeline

  • Japanese Colonial Era (1905-1948): Japanese opened coal mine at Benxi, became Sino-Japanese joint venture, fell under Japanese control during Manchuria occupation, business returned to Chinese control after WWII
  • Early Chinese Development (1948-1955): Coal mine spun off and sold as Benxi Mining Bureau, Chinese government invested in Liaoning iron and steelmaking with USSR technical support
  • Corporate Structure Formation (1995-1997): Created Benxi Iron and Steel Group Mining Co Ltd for ore operations, formed Benxi Steel Plates Co Ltd as specialised plate producer
  • Strategic Expansion Attempts (2005-2011): Prematurely announced merger with Anshan I&S, mulled stainless steel production entry, completed acquisition of Beitai Steel, pursued stainless steelmaking expansion plans
  • Operational Challenges (2017-2019): Blast furnace fire shut down one third of iron making capacity, confirmed abandonment of long-discussed Anshan merger plan
  • Final Integration (2020-2021): Commissioned high-grade steel slab caster supplied by SMS, press reports of renewed Anshan merger discussions, Anshan Iron & Steel acquired major equity stake completing long-anticipated consolidation
Timeline shows transformation from Japanese colonial mining operation through Chinese state development to eventual integration with Anshan Steel. Demonstrates long-term consolidation trends in Chinese steel industry and resolution of decades-long merger speculation.

The timeline below covers the history of the firm.

  • 1905: The Japanese open a coal mine at Benxi.
  • 1910: Mine becomes a Sino-Japanese joint venture.
  • 1931: Falls under Japanese control after occupation of Manchuria.
  • 1948: Business returns to Chinese control.
  • 1953: Coal mine spun off and sold as Benxi Mining Bureau.
  • 1955: Gov invests in Liaoning iron and steelmaking.
  • 1995: Creation of Benxi Iron and Steel (Group) Mining Co Ltd.
  • 1997: Formation of Benxi Steel Plates Co Ltd.
  • 2005: Prematurely announces merger with Anshan I&S.
  • 2008: Mulls commencement of stainless steel production.
  • 2010: Benxi Steel completes acquisition of Beitai Steel.
  • 2011: Pursues expansion plans in stainless steelmaking.
  • 2017: BF fire shuts one third of Bengang iron capacity.
  • 2019: Confirms abandonment of Anshan merger plan.
  • 2020: Commissions high-grade steel slab caster supplied by SMS.
  • 2021: Press reports talk of renewed merger plans with Anshan Iron and Steel.
  • 2021: Anshan Iron & Steel acquires major equity stake in Benxi Steel. For further information see history of Ansteel

Notes
  • 1910: This JV was named as the Benxi Lake Commercial Coal Mining Company Limited.
  • 1955: Much of this investment, based on open-hearth furnace steelmaking, was made with technical support from the USSR.
  • 1995: The Benxi Iron and Steel (Group) Mining Co operates several iron ore mines, including the Nanfen Open-Pit Mine, the Waitoushan iron mine, and iron ore mining at Jiajiapu.
  • 1997: Beitai Iron & Steel Group Co, Ltd was incorporated as a limited liability company in Benxi, Liaoning Province, China, in 1997.
  • 1997: Plate business is also known as the Bengang Steel Plates Co Ltd.
  • 2005: The merger of Benxi and Anshan Steel did not in the end take place. The newly-formed entity was to have been called the Anben Iron & Steel Group, and would have been the third largest steelmaker in China after Hebei Iron and Steel Group and Baosteel Group.
  • 2010: The Benxi Steel Group [Bengang Group] was formed as a holding company for the Benxi Iron and Steel (Group) Co Ltd and for the Beitai Iron and Steel (Group) Co Ltd.
  • 2019: Benxi Steel and Ansteel are located in northeast China’s Liaoning province. Benxi is backed by the provincial government and Ansteel is backed by Beijing. Rumours about a potential merger between the two groups have continued since 2005 but were finally denied by Benxi's Chairman Chen Jishuang in March 2019.
  • 2020: New single-strand slab caster to be installed at Benxi in north-east China is designed for annual production of ~1.6 million tonnes of slabs of 230-250 millimeter thickness and 1000-1900 millimeters width. Commissioning is scheduled for the end of 2020.
  • 2021: If it did take place, a merger of the two Chinese steel giants Anshan Iron and Steel Group and Benxi Steel Group - a move discussed since the early 2000s - would create the world's third largest steelmaker.
  • 2021: In August 2021, China's Liaoning province transferred its 51% share stake in Benxi Iron & Steel, or Bengang, to central government-owned Anshan Iron & Steel for free, thus effecting the takeover.