China News Service, August 21 (Shen Hai, Zheng Yingying) China Baowu Iron and Steel Group Co., Ltd. (hereinafter referred to as China Baowu) issued a news on the 21st that China Baowu and Shanxi Provincial State-owned Capital Operation Co., Ltd. (hereinafter referred to as Shanxi State-owned Assets The operating company) signed a free transfer agreement on the same day, and Shanxi State-owned Operating Company transferred 51% of Taiyuan Iron and Steel (Group) Co., Ltd. (hereinafter referred to as Taigang Group) to China Baowu for free.
This reorganization is an important measure to implement the Party Central Committee and the State Council's promotion of the healthy development of China's steel industry, in-depth advancement of the restructuring of the state-owned economy, implementation of supply-side structural reforms, and acceleration of the merger and reorganization of industries with excess capacity.
According to reports, the joint reorganization with Taiyuan Iron and Steel Group will achieve China's Baowu "100 million tons of Baowu" planning goal, while enhancing China's Baowu's comprehensive competitiveness in the stainless steel field. The joint reorganization will also drive TISCO to achieve leapfrog development.
China Baowu was formed by the joint reorganization of the original Baosteel Group Co., Ltd. and Wuhan Iron and Steel (Group) Company. It was inaugurated on December 1, 2016 and is a pilot enterprise for state-owned capital investment companies. In 2019, China Baowu continued to maintain its leading position in the industry, achieving a steel output of 95.46 million tons, a total operating income of 552.2 billion yuan, and a total profit of 34.53 billion yuan. Its scale of operation and profitability ranks first in the world and ranks among the Fortune 500 Strong 111th.
Taiyuan Iron and Steel Group is a large-scale steel complex integrating iron ore mining and steel production, processing, distribution, and trade. It has an annual production capacity of 12.94 million tons of steel (including 4.5 million tons of stainless steel), and can produce stainless steel and carbon steel. And three series of composite panels. TISCO's total assets of 128.47 billion yuan in 2019, 10.86 million tons of crude steel production, operating income of 79.7 billion yuan, and total profit of 3.513 billion yuan.
It is reported that the above-mentioned reorganization still needs to be reported to the State-owned Assets Supervision and Administration Commission of the State Council for approval, and the anti-monopoly review and other procedures must be performed. (Finish)