SHANGHAI, Jul 1 (SMM) – Top Chinese steelmaker China Baowu Steel Group is expected to see its annual steel capacity to reach 100 million mt by the end of next year, Chen Derong, chairman of the steel giant said at the rally for the second round of equity financing for its e-commerce steel trading platform Ouyeel last week.

This is expected to be achieved after technological upgrading boosts capacity of Chongqing Iron & Steel, which, Chen said, would “soon” come under control of Baowu, to 10 million mt.

Four Rivers Investment Management, a joint venture led by WL Ross & Co and China BaoWu Steel Group completed a comprehensive restructuring and recapitalisation of Chongqing Iron & Steel in early 2018. 

Baowu obtained a majority stake in its rival Maanshan Iron and Steel, or Magang, in June after Beijing approved the transfer of Anhui Provincial State-owned Assets Supervision and Administration Commission’s 51% stake in Magang to Baowu. This brings steel capacity of Baowu to 90 million mt.