Establishment of the world's third largest steel company

China's Ansteel Group and Ben Gang have merged to form the world's third largest steel producer.

Chinese steelmakers Ansteel Group and Ben Gang have officially started the process of combining their businesses. After this merger, they will become the third largest steel producer in the world.

State-owned Ansteel acquires a 51% stake in Ben Gang from the regional government assets issuer. It will be part of the government's restructuring plan to consolidate production in the steel industry.

Ansteel will have an annual crude steel production capacity of 63 million tons after merging operations in Liaoning province in northeastern China.

Ansteel will take over the position of HBIS and will become China's second largest steelmaker and the world's third largest steelmaker after China's Baowu Group and ArcelorMittal.