News Room - Steel Industry

Posted on 29 Nov 2007

CISA hopes China's steelmakers to be world-scale companies

China's Iron and Steel Association(CISA) has urged the State Council to support the rationalization of the industry around the top 4 manufacturers for developing world-scale companies.

While Chinese steel industry has been still decentralization, its foreign competitors are trying to hand together, such as Mittal Steel acquired Arcelor in July 2006, India-based Tata merged with Corus in February 2007, even BHP Billiton is trying to acquire Rio Tinto from earlier this month, all of these are increasing the competitive pressure on China's steel industry. It is said that reorganization is the key of dealing with international competition.

The major resistance of reorganization is from local governments because the steel companies are one of their major tax sources.