Hubei Province-based Chinese steel producer Wuhan Iron and Steel Group (WISCO) and Shanghai-based major Chinese steelmaker Baosteel have announced that they are planning a strategic restructuring, while trading of shares of both companies has been suspended of today, June 27.
The two sides also stated that the restructuring in still in the early planning stage and that they are awaiting approval from the Chinese authorities. In 2015, Baosteel Group had a crude steel output of 34.938 million mt, fifth among steel producers worldwide, while Wuhan Iron and Steel Group (WISCO) recorded a crude steel output of 25.776 million mt, 11th among producers worldwide, according to the data issued by World Steel Association. Based on the 2015 outputs of Baosteel Group and WISCO, they would have an overall output of over 60 million mt and would exceed the output of Hebei Iron and Steel Group, thereby becoming the biggest steel group in China.