The authorities in the northwestern Chinese province of Shaanxi are planning the merger of three local steelmakers, Hanzhong Iron & Steel Co., Lueyang Iron & Steel Co and Longmen Iron & Steel Co., into a larger group called Shaanxi Iron & Steel Group, for the purpose of improving the competitiveness of the steel industry, enhancing the conformity of industrial resources in the province and promoting the upgrading of the steel industry.
Longmen Steel currently has an annual production capacity of three million mt of steel products used in the construction sector, mainly consisting of wire and rebar. Hanzhong Steel's annual production capacity consists of one million mt of steel billet and 600,000 mt of steel strip. This producer is also expecting to bring a 600,000 mt steel wire facility on stream later this month. Finally, Lueyang Steel has an annual production capacity of approximately 500,000 mt of steel wire.