In China, list of steel giants changed with new merger

China is shaking up the global steel production rankings again with the merger of two producers set to form the world's third largest producer.

According to Friday's announcement, Ansteel Group's annual crude steel capacity will increase to 63 million tons with sales worth 300 billion yuan ($46 billion) after acquiring a 51 percent stake in Benxi Steel Group Co. This will only follow China Baowu Steel Group Corp. -- already the world's largest producer and planning to become even larger -- and ArcelorMittal SA.

Ansteel said the acquisition would deepen the country's ongoing steel supply cuts, increase industry intensity, and also improve iron ore supply security. Li Xinchuang, vice president of the China Iron & Steel Association, said the group's annual combined iron ore output will reach 50 million tons.

China's steel industry has seen a series of mergers as the country tries to tap into larger, better quality producers that can operate more efficiently and have a greater say in the market. Although there has been controversy since at least the early 2000s, the troop plans were flagged in a stock market filing in April.