Benxi Steel Group, supported by the Liaoning provincial government, has announced that they will not merge with its Beijing-supported regional rival Ansteel Group.
The two steel groups had been in talks for a possible merger since 2005, but negotiations have now been halted altogether.
Benxi Steel recently launched a mixed ownership structure that is expected to reduce debt by 10% and cut financial costs by CNY 2 billion ($298 million).
Both companies specialize in sheet making, with a focus on cold rolled coil and galvanized steel sheet for the automobile industry.
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