History of China Baowu Iron & Steel Group
In 2016, the China Baowu Group was the 2nd largest steelmaker in the world, producing ~64 million tonnes (mt) of steel.
The timeline below covers the history of the firm.
- 2016: Baowu formed from acquisition by Baosteel of Wuhan Iron & Steel.
- 2016: Business renamed as China Baowu Iron & Steel Group Co.
- 2017: Baowu considers major stainless steel investment in Shadong.
- 2018: Baowu reportedly in talks to take over rival Magang Group.
- 2019: Takes 51% stake in Magang Group Holding Co.
- 2016: The Q3 2016 acquisition of Wuhan I&S (Wisco) by Baoshan Steel was considered by many industry observers to be the first step in the creation of a steel producer second only in output to ArcelorMittal.
- 2016: Baoshan Iron & Steel Co was renamed as the China Baowu Iron & Steel Group Co in November 2016.
- In mid-2017, Baowu Steel signed a memorandum of co-operation with Shandong Xinhai Technology Co relating to investment in a stainless steel plant in Shandong province. This new facility will reportedly produce up to 3.8 mt/year of stainless steel and 1.8 mt/year of nickel pig iron.
- Baowu's strategy is to reach 100 million tons of capacity by 2021 (from 70 million tons in 2017); acquisition of Magang Steel Group thus fits in wi the strategic objectives of the firm.
Baowu and Magang are geographically close to each other, with Magang headquartered in Maanshan city in China's eastern Anhui province (a four-hour drive from Shanghai, where Baowu Group is based).
Baowu mainly produces flat steel products. Magang's output includes both flat and long steel products.
- June 2019 acquisition by Baowu Iron and Steel Group of a 51% equity stake in Magang Group Holding Co Ltd [referred to as a 'merger'] took Baowu’s total production capacity from 70 million tons to 90 million tons, bringing it closer to the 113-million-ton total capacity of ArcelorMittal, the world's largest steelmaker.
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