Shougang Group, one of China's leading steel producers, is in talk to acquire Guiyang Special Steel Co. Ltd., said Zhu Jimin, Shougang's chairman on Wednesday, China Securities News reported Thursday.
Based in the Southwest China's Guizhou province, Guiyang Special Steel has an annual capacity of less than one million tonnes.
Zhu jimin said the company was keep talking with other local steel makers, with more such buying plans underway.
He said the acquisition talk with Changzhi Iron and Steel (Group)Co. Ltd., which has an annual capacity of near 3 million tonnes, was going on smoothly.
Based in the coal-rich northern Shanxi Province, Changzhi steel maker has ample resources and wide market access.
China has encouraged consolidations among the country's steel makers to squeeze excess production amid the economic slowdown.
Zhu said the consolidation could take at least three years to complete.
(Xinhua News Agency March 12, 2009)