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History of Maanshan Iron & Steel (Masteel) - Anhui, China

History of Maanshan Steel History of Maanshan Steel

Just before its 2019 takeover by the China Baowu Group, Maanshan (also known as Masteel, or Magang) was the 16th largest steelmaker in the world with crude steel production of almost 20 million tonnes / year.

Located on the banks of the Yangtze river, the works was set up in the 1950s to quicken national steel production.

Maanshan Steel Timeline

  • Foundation & Early Development (1953-1965): Maanshan Iron Mining Plant established, Maanshan Iron & Steel founded on Yangtze River banks to accelerate national steel production, produced first monolithic train wheel
  • Product Diversification (1987-1994): Commissioned 0.4mt/year high speed wire rod mill, renamed as Magang Holding Company, ratified as Sino-foreign limited liability company structure
  • Technology Leadership (1998-2004): Rolled China's first H-beam on new 0.6mt/year mill, constructed hot and cold rolling thin strip facilities, commenced hot dip galvanised coil production with advanced technology
  • Acquisition & Growth (2006-2010): Acquired Hefei Iron and Steel expanding regional presence, faced Baosteel merger approach but provincial government nullified possibility through industry development guidelines
  • Operational Challenges (2015-2017): Permanently closed polluting Masteel Hefei operations, accused of industrial espionage by US Steel in ITC probe, implemented 10,000 employee layoffs amid industry restructuring
  • Baowu Integration (2019-2020): Ownership transferred to China Baowu Steel Group for $659 million, integrated into world's largest steel conglomerate ending independent operations as 16th largest global steelmaker
Timeline shows evolution from state-founded regional producer to technology leader in Chinese steel industry, followed by integration into national champion Baowu. Demonstrates China's steel consolidation strategy and transition from regional competitors to centralised national leadership.

The timeline below covers the history of the firm.

  • 1953: Maanshan Iron Mining Plant established February 1953.
  • 1958: Maanshan Iron & Steel founded in August 1958.
  • 1965: Masteel produces its first monolithic train wheel.
  • 1987: Commissions 0.4 mt / year high speed wire rod mill.
  • 1993: Renamed as the Magang Holding Company.
  • 1994: Ratified as a Sino-foreign limited liability company.
  • 1998: Rolls first H-beam in China on new 0.6mt/yr mill.
  • 2001: Hot rolling thin strip line begins construction.
  • 2002: Start of Masteel cold rolling thin strip project.
  • 2003: First hot rolled coil successfully rolled in new HSM.
  • 2004: First cold rolled coil successfully rolled in new CRM.
  • 2004: Production commences of hot dip galvanised coil.
  • 2006: Acquires Hefei Iron and Steel.
  • 2010: Baosteel approaches Maanshan about a potential merger.
  • 2015: Closes Masteel (Hefei) Iron and Steel.
  • 2016: Firm is accused of spying by United States Steel.
  • 2017: 10,000 employess laid off in Ma'anshan City.
  • 2019: Ownership is transferred to China Baowu Steel.
  • 2020: For further history, see Baowu history page

Notes
  • The origins of the steel plant go back to the Maanshan Iron Mining Plant, which was established in 1953. Maanshan, based in Anhui Province, later also became known as Masteel (or Magang).
  • 2006: Hefei became incorporated into the parent as Masteel (Hefei) Iron & Steel, but the steel plant was subsequently permanently closed down because of heavy pollution and general overcapacity. Hefei had been a producer of rebar and steel wire rod.
  • 2010: Anhui provincial government response to Maanshan merger proposal was to announce industry development guidelines that nullified this merger possibility.
  • 2016: The United States International Trade Commission (ITC) launches probe into spying allegations. Maanshan Iron and Steel (together with other Chinese steelmakers including Wuhan I&S) is accused of stealing commercial secrets. In this dispute, U.S. regulators alleged that Chinese competitors stole trade secrets from the United States Steel Corporation, and fixed prices.
  • 2017: Across the country 1.8 million iron steel and coal workers were banished from the payroll in 2017 in one of biggest waves of redundancy since the late 1990s.
  • 2019: Baosteel's acquisition of Maanshan Iron and Steel was reportedly valued at approximately $659 million.