BEIJING Reporting - Government of China announced the merger of four national steel company into a new company. This policy was carried out as an effort to increase capacity, reduce carbon emissions, and strengthen its position in iron ore pricing.
The four companies of China are all located in Tianjin, China, it is the Tianjin Pipe (Group) Corp., Tianjin Iron & Steel Group, Tianjin Tiantie Metallurgy Group, and Tianjin Metallurgy Group Co.Keempatnya joined a new company, Tianjin Bohai Iron & Steel Company.
"The combined company is able to produce as many as 21 million tons of steel in 2009 and then," writes the AFP quoted the Association of Iron and Steel Manufacturers China.
Merging the company is also one of consolidation efforts in the steel industry in line with government policy that wants economic growth accompanied by a sustainable environment. In addition, the merging of the domestic steel companies were expected to boost industrial competitiveness among national steel producers.
The AFP report also mentions, China's economic growth in recent years has increased demand for domestic steel. This makes the steel as one of strategic industries that support the State economy Panda. Government plans to make the existing steel producers currently can meet 60 percent of national demand in 2015.
In comparison, last year China's steel production can only meet 44 percent of national demand. Elsewhere, China National Statistics Bureau yesterday reported China's crude steel production in June rose 9 percent to 53.77 million tonnes the previous year. While a monthly basis, production decreased 4.2 percent in June compared to May 2010. (otofinanceinfo)
source image and article: okezone.com
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