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Baosteel and WISCO merger creates world's second-largest steelmaker
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
Baosteel Group and Wuhan Iron and Steel (Group) Corp (WISCO) will merge to become the world's No. 2 steelmaker, part of China's efforts to stem losses in a steel industry blighted by overcapacity. The merger is practical as both are central state-owned enterprises and their consolidation should achieve cost savings and efficiency gains. The merger could signal a new wave of industry consolidation, and fuel optimism about an end to issues such as overcapacity in China's steel industry.
Table of contents
- Executive summary
-
The merger
- Increased market share
- Greater bargaining power
- Reduced costs
- Optimised product offerings and production bases
- The challenges
Tables and charts
This report includes the following images and tables:
- Production share of top 10 producers
- Top 10 Chinese steel companies in 2015
- Baoshan and Wuhan steel plants' position on the global cost curve
- Map: Baosteel and WISCO's steelmaking operations
What's included
This report contains:
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