Baowu will become the largest steel producer in the world by purchasing 51% of Taiyuan Iron & Steel Co

China's largest steel producer China Baowu Steel Group has announced the acquisition of a 51 percent stake in Taiyuan Iron & Steel (Group) Co Ltd for RMB 14.5 billion (US $ 2.1 billion), bringing the total crude oil production capacity steel will increase to 111 million tons per year. ...

The Shanxi provincial government will maintain a 49 percent balance sheet. TISCO, headquartered in Shanxi, has an annual production of 12.94 million tonnes, of which 4.5 million tonnes are stainless steel products. The deal requires further approval from the State Assets Supervision and Administration Commission of the State Council.

China Baowu was formed in December 2016 from the merger of the Shanghai-based Baosteel Group and the Wuhan Iron & Steel Group in Hubei province. It is the largest steel producer in China with a production capacity of 98.5 million tonnes. Baowu consists of subsidiaries Baosteel Group in eastern and southern China, Wuhan Steel Group in central China, Maanshan Iron & Steel Group in eastern China, and Chongqing Iron & Steel in southwestern China. The merger with TISCO will expand Baowu's presence in northern China.

In 2019, Baowu produced 95.46 million tonnes of crude steel, while TISCO produced 10.86 million tonnes, for a total of 106.32 million tonnes. Baowu was the second largest steel producer in the world after ArcelorMittal, which produced 97.31 million tonnes in 2019.