Insight
Baosteel and WISCO merger creates world's second-largest steelmaker
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 4 images and tables including:
- 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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