The merger between steelmakers Anshan Iron & Steel Group and Benxi Iron & Steel Group is gaining momentum with the government's appointment of a chairman shortly to head the integrated entity, a mainland newspaper has reported.
A senior official of the Liaoning provincial government, where the two companies are based, will be appointed as the chairman and internal party head of Anben Steel Group, a loose alliance formed in August 2005, 21st Century Business Herald reported yesterday.
It quoted unnamed sources as disclosing that Zhang Xiaogang, Anshan Steel general manager, will be appointed combined group general manager, and Benxi Steel chairman Yu Tianchen will serve as group vice-executive general manager.
The report said it would be a critical step to restructure personnel, procurement procedures, production and sales network and eventually merge the two groups into one.
At present, Anben Steel is relying on only one committee with members from both groups to work out details of the merger proposal.
The restructuring plan on personnel and operation has been submitted to the State Council and is expected to be approved in the first quarter. However, a restructuring of the shareholding would take longer, the newspaper said.